Tokyo rub­ber rises to 2-week high amid lack­lus­tre trade

The Financial Daily - - INTERNATIONAL -

TOKYO: Bench­mark Tokyo rub­ber fu­tures rose to a 2week high on Wed­nes­day, fol­low­ing a mid-day gain in Shang­hai fu­tures, but trade was lack­lus­tre and fur­ther gains were capped on prof­ittak­ing, deal­ers said.

Tokyo Com­mod­ity Ex­change (TOCOM) fu­tures, which set the tone for tyre rub­ber prices in South­east Asia, started on a weak note in early trade, but a sud­den gain in mid-day trade in Shang­hai prompted fresh buys, said Jiong Gu, an­a­lyst at Yu­taka Shoji Co.

The TOCOM rub­ber con­tract for July de­liv­ery fin­ished 1.2 yen higher at 202.2 yen per kg. It ear­lier climbed to as much as 203.9 yen, the high­est since Jan. 13.

"Shang­hai mar­ket was choppy. I heard buy or­ders from hedge funds boosted Shang­hai fu­tures for a short while, but the prices came off later as most of other in­vestors are still bear­ish about the mar­ket due to weak de­mand in China," Gu said.

The most-ac­tive rub­ber con­tract on the Shang­hai fu­tures ex­change for May de­liv­ery rose to as high as 13,455 yuan per tonne be­fore re­treat­ing to fin­ish at 13,280 yuan per tonne, down 25 yuan.

"TOCOM trade was very light, with most of in­vestors do­ing only day-trades as it is not clear which direc­tion the mar­ket is head­ing," Gu said.

The front-month rub­ber con­tract on Sin­ga­pore's SICOM ex­change for Fe­bru­ary de­liv­ery last traded at 139.50 U.S. cents per kg, down 0.90 cent. -Agen­ceis

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