Benchmark Tokyo rubber futures climbed for a fifth straight session to a fresh 14-month high on Monday, helped by firmer Shanghai futures and a weak yen against the dollar. Tokyo Commodity Exchange (TOCOM) futures, which set the tone for tyre rubber prices in Southeast Asia, have gained 26 percent since April’s lows, backed by aggressive buys from Chinese speculators and a stronger Shanghai market, although an overall supply issue in Asia has not improved, dealers said.
The Tokyo Commodity Exchange rubber contract for November delivery finished up 2.6 yen, or 1.1 percent, at 243.8 yen ($1.96) per kg. It rose to 244.6 yen in Friday’s evening trade, which is counted as part of Monday’s trade, hitting the highest since March 17, 2014 and above last week’s high of 242.9 yen. “Behind the gain in TOCOM prices was a gain in Shanghai futures,” said a Tokyo-based dealer, declining to be named.
The most-active rubber contract on the Shanghai futures exchange for September delivery rose 30 yuan to finish at 14,750 yuan ($2,379.65) per tonne, after profit-taking in late trade weighed on the market which earlier hit 15,245 yuan, the highest since May 7. The front-month rubber contract on Singapore’s SICOM exchange for July delivery last traded at 163.7 US cents per kg, up 3.7 cent.
– Reuters
