Tokyo, Shanghai rubber gain on short-covering on July 17
Tokyo Commodity Exchange (TOCOM) futures rose over 1% on Wednesday, in line with gains in Shanghai rubber, as traders short-covered on earlier losses. The benchmark TOCOM rubber contract for December delivery rose 1.2% to 180.5 yen ($1.67) per kg.
Meanwhile, the most-active rubber contract on the Shanghai futures exchange for September delivery edged up 0.5% to 10,525 yuan ($1,530.06) per tonne. TOCOM's technically specified rubber (TSR) 20 futures contract for January delivery was at 153.1 yen per kg. The front-month rubber contract on Singapore's SICOM exchange for August delivery last traded at 139.8 US cents per kg, up 0.1%.
"There is some short covering happening today, so the market has been firm. But in the longer term the market is still set to go down as China demand is weak," said an industry player in Singapore.
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