Benchmark Tokyo rubber futures rose on Monday, tracking strong prices in Shanghai, though high stocks of the commodity weighed on prices. Tokyo Commodity Exchange (TOCOM) futures, which set the tone for rubber prices in Southeast Asia, hit a one-week high in early trade.
The Tokyo Commodity Exchange rubber contract for January delivery finished 1.6 yen ($0.0144) higher at 169.6 yen per kg. The most-active rubber contract on the Shanghai Futures Exchange for September delivery rose 35 yuan ($5.12) to finish at 10,280 yuan per tonne.
The front-month rubber contract on Singapore's SICOM exchange for August delivery last traded at 131.6 US cents per kg, down 0.9 cent. "The rise was not that big. It was more just fluctuation. The major issue here in China is the high rubber stocks," said Zhu Ziyue, analyst with Hongyuan Futures. "Then there is the demand side. The government policy of monetary and fiscal easing in the second half of the year might stimulate demand, but the impact will be limited," Zhu said.
Comments
Comments are closed.