TOKYO (July 25): Benchmark Tokyo rubber futures rose on Wednesday, snapping a four-session losing streak and recovering from a 22-month low hit the previous day, helped by gains in Shanghai futures and as investors looked for bargains.
“We’ve seen some position adjustments ahead of the near-term contract’s expiration,” a Tokyo-based dealer said, adding that the market has been oversold and Shanghai gains also lent support.
Tokyo Commodity Exchange (TOCOM) futures, which set the tone for rubber prices in Southeast Asia, had hit their lowest since Oct 5, 2016 on Tuesday, dragged down by concerns over escalating US-China trade spats.
The TOCOM rubber contract for December delivery finished 2.1 yen, or 1.3%, higher at 168.4 yen (US$1.52) per kg.
The TOCOM’s July contract expired at 162.5 yen on Wednesday.
The most-active rubber contract on the Shanghai futures exchange for September delivery climbed 185 yuan to finish at 10,320 yuan (US$1,525) per tonne, bouncing back from an about 1-month low hit the previous day.
“Laos flooding also raised concerns over rubber output in the areas along the Mekong River, including China’s key producing district of Yunnan province,” the dealer said.
Nineteen people have been confirmed dead and more than 3,000 need to be rescued after a dam collapsed in a remote part of land-locked Laos, local media reported on Wednesday.
The front-month rubber contract on Singapore’s SICOM exchange for August delivery last traded at 131.7 US cents per kg, up 1.2 cent.
(US$1 = 111.0800 yen)
(US$1 = 6.7662 Chinese yuan renminbi)
