Tokyo rubber rises on June 28
The Tokyo Commodity Exchange (TOCOM) futures rose on Thursday on a weaker yen against the US dollar, but most investors eyed the G20 summit in Japan, where US President Donald Trump is also holding bilateral talks with his Chinese counterpart Xi Jinping.
The benchmark TOCOM rubber contract for December delivery finished up 2.0 yen, or 1%, at 194.6 yen ($1.8) per kg.
The most-active rubber contract on the Shanghai futures exchange for September delivery dropped 55 yuan to finish at 11,590 yuan ($1,686) per tonne.
"The TOCOM is playing at a tug of war as higher physical prices in Thailand are lending support to Tokyo's near-month contracts while weaker Shanghai futures are weighing on TOCOM's far-month contracts," said Hideshi Matsunaga, analyst at Sunward Trading.
"It is rare to see a big backwardation spread like now without seeing huge volatility in the market," he said, pointing to price difference of over 40 yen between July and December contracts.
TOCOM's technically specified rubber (TSR) 20 futures contract for December delivery closed up 1% at 160.0 yen per kg. The front-month rubber contract on Singapore's SICOM exchange for July delivery last traded at 150.0 US cents per kg, up 0.1%.
Related Article
- Tireworld Insight: Domestic tire makers eye overseas expansion
- Tireworld Insight: Price disparity severe between China's rubber exports and imports
- Tireworld Insight: China tire exports dependent on US market performance
- Tireworld Insight: SHFE rubber expected to move in tight range in short-term
- Tireworld Insight: Rubber futures to test near-term resistance at 15,000 yuan/tonne
- Tireworld Insight: China’s tire industry on track of rapid growth
