Asian Rubber Settle Higher; Slow Arrivals, Weaker Yen Help
1 July 2015, 18:27 SEAST
Asian rubber settled higher Wednesday, helped by slow arrivals in the physical market. Although major producing countries were exiting the low-output season, International Rubber Consortium chief executive Yium Tavarolit said in his weekly note that supply has been tight this year due to persistent erratic weather.
Benchmark December natural rubber futures on the Tokyo Commodity Exchange settled Y2.8 higher at Y220.8 a kilogram due to a weaker Japanese yen and a rebound in Shanghai rubber despite weakness in the Chinese economy.
A Singapore-based trader said Shanghai’s gains were likely due to a technical rebound after recent market volatility. He added that prices were likely to continue to be choppy, as bulls and bears struggled amid market uncertainty.
Benchmark September natural rubber on the Shanghai Futures Exchange settled 1.4% higher.
December Tocom rubber closed Y0.8 higher at Y221.6/kg in the night session, which is considered part of the next trading day.
Traders said buyers were busy trying to lock in cheap cargoes on the spot market after this week’s price slump, but producers were generally unwilling to sell at current levels.