TOKYO: Benchmark Tokyo rubber futures edged lower on Wednesday as renewed falls in oil prices and weaker Shanghai rubber futures outweighed declining rubber inventories at Japanese ports, dealers said.
The Tokyo Commodity Exchange (TOCOM) rubber contract for August delivery settled 0.5 yen, or 0.2 percent, lower at 211.5 yen ($2) per kg.
“The market was pressured by slumping oil prices and a drop in Shanghai market in early trade,” said Jiong Gu, analyst at Yutaka Shoji Co.
“But it temporarily rebounded following a slight recovery in Shanghai futures, but finished lower as traders took profits toward the end of the session to square off their positions,” he said.
Brent crude fell towards $53 a barrel on Wednesday as U.S. crude stocks were forecast to have surged for the tenth straight week to a new record high, fuelling supply concerns of a global oil glut, although a weaker dollar kept a floor under prices.
The most-active rubber contract on the Shanghai futures exchange for September delivery fell 100 yuan to finish at 12,495 yuan ($2,006) per tonne.
Still, declining rubber stocks in Japan, due to slack imports from Thailand, gave some support, Gu added.
Crude rubber inventories at Japanese ports stood at 11,904 tonnes as of March 10, down 3 percent from the last inventory date, data from the Rubber Trade Association of Japan showed on Wednesday.
The front-month rubber contract on Singapore’s SICOM exchange for April delivery last traded at 142.0 U.S. cents per kg, down 1.3 cent.
– Reuters
