Tocom RSS3 rubber futures settle 2.0% higher, above the key Y250/kg level. “That Tocom can settle above this level finally is a good sign. We may see further gains, although Shanghai is now paring gains in its last half an hour of trade, so we will keep our fingers crossed,” says a Bangkok-based trader. He notes that despite improved sentiment in the last few days, Tocom’s movement over the last month is considered limited due to low trading volumes and open interest levels. He adds “liquidity on Tocom has dropped in the last year due to market uncertainty, so Tocom price movements now are exaggerated. Many in the trade are in fact looking at movement in the Y230-Y280/kg range, or if they are less optimistic, in the Y220-Y260/kg range, so today’s trade is still considered rangebound.” Benchmark December rubber settles Y5 higher at Y251.2/kg, off the intraday and two-week high of Y253/kg.
Source: Dow Jones
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