TOKYO (June 13): Benchmark Tokyo rubber futures hit a near two-month low on Wednesday, tracking a plunge in Shanghai futures, amid worries over rising production and high inventories in consuming countries.
The most-active rubber contract on the Shanghai futures exchange for September delivery fell to 10,600 yuan (US$1,655), the lowest intraday level since July 2016, before ending the day at 10,835 yuan per tonne.
“The market is awash with supplies from Indonesia, Malaysia among others,” said a Japanese trading source.
The Tokyo Commodity Exchange rubber contract for November delivery finished 5.2 yen lower at 181.3 yen (US$1.64) per kg, after touching 180 yen earlier, the lowest since April 18.
The front-month rubber contract on Singapore’s SICOM exchange for July delivery last traded at 137.5 US cents per kg, down 2.6 cents.
(US$1 = 110.5400 yen)
(US$1 = 6.4044 Chinese yuan)