This entry was posted on Monday, August 1st, 2011 at 8:31 pm and is filed under Rubber News. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.
[Dow Jones] Tocom rubber futures settle 0.8% higher as overall market sentiment improves after US President Barack Obama confirms a deal to raise the debt ceiling is in place, easing concerns of a possible credit downgrade or default. However, a slowdown in China”s manufacturing activity in July, due to Beijing”s tightening measures, capped Tocom”s upside. Tocom is supported by fundamentals as demand still outstrips supply, but external factors–such as the strong yen–continues to weigh, a trader in Hat Yai says. “Volumes are thin because Tocom is just so volatile–you take a long position, but prices don”t go up; you take a short position, but prices don”t come down.” He says going by fundamentals, Tocom should be at least Y400/kg now. Benchmark January rubber settles Y3.2 higher at Y389.7/kg, off an intraday high of Y392.5/kg.
Source: Dow Jones