Tocom Rubber Fall; Stockpiles Weigh; Futures ‘Weird’
3 April 2014, 09:25 SEAST
Tocom RSS3 rubber futures fall ahead of the spot month’s expiry Tuesday although prices are still in the backwardation pattern amid the low-production season.
Traders say high stockpiles in China and Japan weigh, putting downside pressure on prices. Meanwhile, IRCo chief executive, Yium Tavarolit, says in his weekly note that tight supply in the major producing regions of Thailand,Indonesia and Malaysia is lending support to prices in the physical market, so the weakness in rubber futures is “weird”.
Benchmark August rubber trades Y4.0 lower at Y230.7/kg, off the intraday low of Y230.1/kg.