TOCOM edges higher on weaker yen
Benchmark Tokyo rubber futures rose slightly on Wednesday on a weaker yen and tracking gains in Shanghai rubber.
Tokyo Commodity Exchange (TOCOM) futures, which set the tone for rubber prices in Southeast Asia, have extended gains as the yen depreciated against the dollar, though high stocks and flat demand still weigh on prices.
"Overall, fundamentals of the rubber (market) remain quite stable. Stocks are high and demand is weak, the rise will be limited," said Xie Xiaonan, an analyst with JLC Network Technology Co Ltd.[X] CLOSESponsored Contentvolume_offVideo Player The Tokyo Commodity Exchange rubber contract for December delivery finished 1.3 yen (US$0.0115) higher at 174.4 yen per kg.
The most-active rubber contract on the Shanghai futures exchange for September delivery rose 20 yuan (US$2.98) to finish at 10,405 yuan per tonne.
The front-month rubber contract on Singapore's SICOM exchange for August delivery last traded at 133.3 US cents per kg, down 0.3 cent.
The dollar was quoted around 113.06 yen, compared with 112.40 yen on Tuesday afternoon.
(US$1 = 113.0400 yen)
(US$1 = 6.7118 Chinese yuan)
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