[Dow Jones] Tocom RSS3 rubber futures settle 0.5% higher as prices rebound, having dipped into negative territory for most of the trading day. Supply concerns persist, with the Thai Meteorological Department issuing a flood warning at 0430 GMT Thursday–its 20th since last Friday, citing “torrential rain with isolated heavy falls in southern Thailand.” Despite supply fears supporting natural rubber prices, the market is clouded by macroeconomic uncertainty, which may weigh on demand. Physical traders say that buyers are cautious at high prices, and China buyers have been depleting domestic stockpiles at lower prices instead of buying actively from international markets. Traders lament the volatile trade on Tocom; “it”s very difficult; you take a long position, prices fall, so you cut losses; you take a short position, prices rise and you have to cover,” says a Singapore-based dealer. The benchmark Tocom September contract settles Y2.1 higher at Y432.2/kg, off the intraday high of Y442.7/kg.

Source: Dow Jones

Comments are closed.