Rubber up

03 Oct, 2015

Benchmark Tokyo rubber futures inched up in thin trade on Friday, recovering from an earlier fall as investors unwound long positions after Japanese equities regained ground. The Tokyo Commodity Exchange (TOCOM) rubber contract for March delivery finished 0.6 yen, or 0.4 percent, higher at 169.9 yen ($1.41) per kg. For the week, TOCOM futures, which set the tone for tyre rubber prices in Southeast Asia, managed to eke out a 0.2 percent gain, marking their first weekly gain in three.
The front-month rubber contract on Singapore's SICOM exchange for November delivery last traded at 122.8 US cents per kg, down 1.8 cent. "Investors were hesitant to take large fresh positions while Chinese players were away for long holidays," a Tokyo-based dealer said. Chinese financial markets are closed until October 7 for national holidays and will reopen on October 8.
"Most of the transactions were day-trade ahead of the US employment data, with the benchmark hovering in a narrow range between around 165-170 yen," he said. Economists expect US non-farm payrolls data, due at 1230 GMT, to show that employers added 203,000 jobs in September, according to a Reuters poll.
Japanese stocks ended flat in thin trade on Friday as investors awaited key US economic data, with the Nikkei share average edging up 0.02 percent to 17,725.13. "The rubber market is expected to stay quite early next week and will be just following global commodities prices," the dealer said.

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