TOKYO (July 31): Benchmark Tokyo rubber futures slid on Friday, ending the month with a loss of nearly seven percent, as investors unwound short positions following a fall in Shanghai futures and ahead of the weekend.
The Tokyo Commodity Exchange (TOCOM) rubber contract for January delivery finished down 3.2 yen, or 1.5 percent, at 203.4 yen ($1.64) per kg.
The TOCOM futures, which set the tone for tyre rubber prices in Southeast Asia, fell 6.7 percent on the month, in a second monthly decline.
“Weaker Shanghai prices led the way for TOCOM to head lower,” a Tokyo-based dealer who declined to be named said.
The most-active rubber contract on the Shanghai futures exchange for January delivery fell 115 yuan to finish at 12,620 yuan ($2,032.30) per tonne.
“With lingering concerns about a volatile Chinese equities market and slowing demand in China, rubber prices will stay under pressure next week, and perhaps will fall below 190 yen in mid-August,” the dealer said.
China stocks fell on Friday and posted their biggest monthly loss in nearly six years, even as Beijing rolled out a series of support measures and promised to step up efforts to bolster the flagging economy.
The front-month rubber contract on Singapore’s SICOM exchange for August delivery last traded at 140.0 U.S. cents per kg, down 2.1 cent.
($1=124.2800 yen)
($1=6.2097 Chinese yuan renminbi)
