TOKYO (June 25): Benchmark Tokyo rubber futures inched up on Wednesday as investors switched their positions to new benchmark contracts, while lower stockpiles in the world’s biggest consumer, China, also supported sentiment, dealers said.
The new benchmark rubber contract on the Tokyo Commodity Exchange (TOCOM) for December delivery <0#2JRU:> ended up 0.8 yen from its opening price of 219.4 yen ($2.15) per kg.
“The rise was mainly due to technical buying of the new December contracts, switching from November ones,” said Toshitaka Tazawa, an analyst with Fujitomi Co.
“The market is apparently keeping a positive momentum after the TOCOM benchmark cleared a resistance of 210 yen level last week.”
Lower inventories and sound economic data in China also supported gains, Tazawa added.
Rubber stocks in bonded warehouses in China’s Qingdao port have fallen about a tenth from a peak in May, partly on reduced demand for the commodity as a loan collateral after a fraud investigation at the port, industry sources said. [ID: nL4N0P60AT]
Activity in China’s factory sector expanded in June for the first time in six months as new orders surged, a preliminary HSBC survey showed on Monday, offering new signs the economy is stabilising thanks to Beijing’s measures to shore up growth.
The most-active rubber contract on the Shanghai futures exchange for September delivery fell 15 yuan to finish at 15,220 yuan ($2,500) per tonne.
($1 = 102.0500 Japanese Yen)
($1 = 6.2090 Chinese Yuan Renminbi)