TOKYO (Nov 25): Benchmark Tokyo rubber futures rebounded from the previous day’s loss on Wednesday, as surging Shanghai futures and higher overnight oil prices lent support, although gains were capped below a key 160 yen ceiling due to nagging worries about oversupply, dealers said.
The Tokyo Commodity Exchange‘s new rubber contract for May delivery finished at 158.1 yen (US$1.29) per kg, up 1.7 yen or 1.1% from its opening price of 156.4 yen.
It fell more than 3% the previous day.
“Strong Shanghai rubber market backed by higher stock market helped ease investors’ concerns over slowing demand in China,” said Satoru Yoshida, a commodity analyst at Rakuten Securities.
The most-active rubber contract on the Shanghai Futures Exchange for January delivery soared 550 yuan or 5.4% to finish at 10,775 yuan (US$1,686.84) per tonne.
The CSI300 index of the largest listed companies in Shanghai and Shenzhen rose 0.7% to 3,781.61, while the Shanghai Composite Index gained 0.9% to 3,647.93 points.
On the upside, crude oil futures hit two-week highs in the previous session, as tension mounted in the Middle East following Turkey’s downing of a Russian warplane, although they eased on Wednesday.
“The TOCOM rebounded today, but the price will likely remain under pressure, unless we see some bullish fundamental changes such as demand pick-up in China,” Yoshida said.
The front-month rubber contract on Singapore’s SICOM exchange for December delivery last traded at 114.8 U.S. cents per kg, up 0.3 cent.
(US$1 = 122.3700 yen)
(US$1 = 6.3877 Chinese yuan)
