Tokyo Commodity Exchange (TOCOM) futures ended steady on Tuesday, with investors staying on the sidelines, as higher physical prices in top producer Thailand were offset by a lack of progress in the prolonged Sino-US trade war. The benchmark TOCOM rubber contract for November delivery finished unchanged at 192.2 yen ($1.78) per kg.
The most-active rubber contract on the Shanghai futures exchange for September delivery slipped 35 yuan to finish at 11,910 yuan ($1,723) per tonne. TOCOM's technically specified rubber (TSR) 20 futures contract for December delivery closed flat at 162.0 yen per kg. The front-month rubber contract on Singapore's SICOM exchange for July delivery last traded at 151.8 US cents per kg, up 0.2%.
"Higher physical prices are still supporting the TOCOM's front-month contracts," a Tokyo-based dealer said. "But investors were waiting for some fresh news to decide what next steps they should take," he added. The price of Thailand's benchmark smoked rubber sheet (RSS3) touched its highest in 20 months on Tuesday due to dry weather, a Tokyo-based dealer said. Its export-grade rubber sheet was quoted at $1.93 per kilogram on a free-on-board (FOB) basis on Tuesday, the highest since September 2017, according to Refinitiv data.

Copyright Reuters, 2019

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