Benchmark Tokyo rubber futures rose on Wednesday on falling production, despite losses in Shanghai futures market. Tokyo Commodity Exchange (TOCOM) futures, which set the tone for rubber prices in Southeast Asia, were also supported by higher oil prices in early trade.
"Tokyo rubber jumped, as production of RSS rubber and TSR rubber - main products traded there - was set to drop due to low profit in 2018," said Hu Haitao, researcher, Shengda futures Co. Ltd. "While in China, fundamentals of rubber are still weak despite short-term stimulus from some news. Prices dropped a little as a result," Hu said.
The Tokyo Commodity Exchange rubber contract for July delivery finished 2.8 yen higher at 179.7 per kg. TOCOM's technically specified rubber (TSR) 20 futures contract for July delivery rose 1.8 cent to close at 152 yen ($1.39) per kg. The most-active rubber contract on the Shanghai futures exchange for May delivery dropped 130 yuan ($19.36) to finish at 11,375 yuan per tonne. The front-month rubber contract on Singapore's SICOM exchange for February delivery last traded at 130 US cents per kg, up 0.2 cent.
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