Shanghai rubber tumble drags TOCOM to near 2-month low

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( 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.

(TOCOM) futures, which set the tone for rubber prices in Southeast , touched 180 yen earlier, the lowest intraday level since April 18.

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.

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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 ’s 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)

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