Tokyo rubber futures rose slightly on Tuesday, snapping a three-day losing streak, as a rise in Japan's Nikkei share average and a fall in the yen currency encouraged investors. "The rubber market tracked a rally in the stock market higher. A weaker yen also kept prices from falling," said a manager at a Tokyo-based commodity broker.
The benchmark rubber contract on the Tokyo Commodity Exchange (TOCOM) for November delivery was newly listed on Tuesday. The contract settled at 268.7 yen ($2.7) per kg after opening at 267.7 yen. The TOCOM market hit a low of 264.1 yen on Monday, its lowest since May 7, amid concerns about oversupply ahead of a seasonal rise in supply from Thailand in the next few months.
"The rubber market looks firmly capped at 275 to 280 yen, as a fall in open interest shows a lack of fresh buying. Also, an increase in supply usually results in a downtrend in prices in July and August," the manager said. The most-active rubber contract on the Shanghai futures exchange for September delivery fell 65 yuan to finish at 19,155 yuan ($3,100) per tonne. The front-month rubber contract on Singapore's SICOM exchange for June delivery last traded at 250 US cents per kg, up 4.9 cents.