Asian Rubber Futures Settle Higher On Tight Supply
27 January 2015, 17:56 SEAST
Asian rubber settled higher Tuesday as seasonal supply tightness gave support.
Natural rubber futures on the Tokyo Commodity Exchange settled higher as market sentiment had improved after the January contract expired on Monday due to strong buying interest amid the low-production season. Tocom’s upside was still limited as investors looked for fresh cues, but the spread between the spot and forward benchmark contract might narrow further as corporate buyers turn their attention to near-month contracts due to tight supply in the so-called wintering season, said Kaname Gokon, deputy general manager of research at Tokyo-based brokerage Okato Shoji.
International Rubber Consortium chief executive Yium Tavarolit said in a note that fundamentals will dominate rubber market sentiment this week after the Thai government’s 25 billion baht ($768 million) rubber support program announced last week.
July Tocom rubber closed flat at Y201.0 a kilogram in the night session, which is considered part of the next trading day.