Benchmark Tokyo rubber futures rose on Friday, as macro market mood remained positive after a trade truce was announced between China and the United States over the weekend. Tokyo Commodity Exchange (TOCOM) futures, which set the tone for rubber prices in Southeast Asia, however, were still under pressure from weak fundamentals.
The Tokyo Commodity Exchange rubber contract for May delivery finished 0.4 yen ($0.0035) higher at 164.4 yen per kg. For the week, Tokyo rubber rose 3.4 yen. TOCOM's technically specified rubber (TSR) 20 futures contract for June delivery rose 0.3 yen to close at 145.2 yen per kg.
The most-active rubber contract on the Shanghai futures exchange for May delivery fell 10 yuan ($1.45) to finish at 11,245 yuan per tonne. The front-month rubber contract on Singapore's SICOM exchange for January delivery last traded at 123.8 US cents per kg, up 0.3 cent.
"Futures have recovered a little this week, mainly supported by easing Sino-US trade relation, and the talks between major producers set in mid-December," said Tang Xiaonan, analyst, JLC Network Technology Co Ltd. "Physicals trade was bad, as supplies overseas are quite high and domestic stocks remain ample. Demand on the other side is quite flat," Tang said.
China and the United States agreed during the meeting of the Group of 20 (G20) leading economies in Argentina over the weekend not to impose additional trade tariffs for at least 90 days while the pair hold talks to resolve existing disputes. Top rubber producers Thailand, Malaysia and Indonesia will meet on Dec. 16 to discuss ways to prop up distressed prices, including potentially curbing exports, a senior Indonesian trade official said on Wednesday.
Comments
Comments are closed.