TOCOM rises on rallying stock market, strong oil prices in early session

Benchmark Tokyo rubber futures rose on Thursday on strong Shanghai, and as rallying stock market offered support.

Tokyo Commodity Exchange (TOCOM) futures, which set the tone for rubber prices in Southeast Asia, remain under pressure from high supplies.

“Rubber prices jumped on a rally in the stock market and crude oil prices, but in limited scale,” said Hu Haitao, a researcher at Yinglu Asset Management (Shanghai) Co. Ltd.

“The rubber supplies glut will continue and Shanghai rubber is expected to remain weak,” Hu said.

The Tokyo Commodity Exchange rubber contract for June delivery finished 4.3 yen higher at 172.3 yen per kg.

TOCOM’s technically specified rubber (TSR) 20 futures contract for June delivery rose 3 yen to close at 148.6 yen per kg.

The most-active rubber contract on the Shanghai futures exchange for May delivery rose 190 yuan to finish at 11,255 yuan per tonne.

The front-month rubber contract on Singapore’s SICOM exchange for January delivery last traded at 124.3 US cents per kg, down 0.1 cent.

Oil prices fell on Thursday after rebounding 8 percent in the previous session, as worries over a glut in crude supply and concerns over a faltering global economy pressured the market.