NEGOTIATOR’S TAKE: Despite recent rise, Rubber prices are still near 6-month lows |
07.13.16 – Reuters –
Benchmark Tokyo rubber futures bounced back on Monday, snapping a four-day losing streak and recovering from a near five-month low hit last week, as a softer yen, higher Tokyo stock market and recovery in Shanghai futures prompted short-covering. The Tokyo Commodity Exchange (TOCOM) rubber contract for December delivery finished 3.1 yen, or 2.1 percent, higher at 150.3 yen ($1.47) per kg.
The TOCOM futures, which set the tone for tyre rubber prices in Southeast Asia, touched 145.9 yen last Friday, the lowest since February 12 amid worries over excess supply and weak demand in top consumer China. The most-active rubber contract on the Shanghai Futures Exchange for September delivery rose 55 yuan to finish at 10,880 yuan ($1,626.72) per tonne.
The front-month rubber contract on Singapore’s SICOM exchange for August delivery last traded at 126.0 US cents per kg, down 0.5 cent.