Rubber recovers

18 Apr, 2018

Benchmark Tokyo rubber futures bounced back from a one-week low hit in the previous session to edge up on Tuesday, supported by technical buying, dealers said. The Tokyo Commodity Exchange (TOCOM) rubber contract for September delivery finished 1.0 yen higher at 180.2 yen ($1.69) per kg. The most-active rubber contract on the Shanghai futures exchange for September delivery extended losses into a second day, finishing down 185 yuan at 11,090 yuan ($1,766) per tonne.
The TOCOM futures, which set the tone for rubber prices in Southeast Asia, slid 3 percent on Monday, while Shanghai futures plunged more than 4 percent at one point the previous day. Thai rubber markets were closed for the Songkran, or Thai New Year, holiday between April 12-17.
The front-month rubber contract on Singapore's SICOM exchange for May delivery last traded at 136.4 US cents per kg, down 0.8 cent. "Monday's loss in Tokyo rubber was smaller than that in Shanghai, which lent support to the TOCOM today," said Jiong Gu, an analyst at Yutaka Shoji Co. "Since Shanghai found a resistance at 11,000 yuan today, the TOCOM was able to finish above a key 180 yen mark," Gu said.

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