BEIJING (June 21): Benchmark Tokyo rubber futures ended weaker on Thursday, tracking lower oil prices, despite the gains in Shanghai market after concerns over China-US trade issues appeared to recede.
Tokyo Commodity Exchange (TOCOM) futures, which set the tone for rubber prices in Southeast Asia, fell to a near 20-month-low in early trade on weaker oil prices.
“The market mood has recovered a little bit from the trade war impact, supporting slight rise of Shanghai futures. However, Tokyo prices were still pressured by the potential crude oil output increase,” said Zhao Wenting, researcher, Dongwu Futures.
“The fundamentals for rubber futures remain weak, as we enter the low demand season,” Zhao said.
The Tokyo Commodity Exchange rubber contract for November delivery finished 1.8 yen (US$0.0163) lower at 174.2 yen per kg.
The most-active rubber contract on the Shanghai futures exchange for September delivery rose 45 yuan (US$6.93) to finish at 10,340 yuan per tonne.
Oil prices fell as Iran signalled it may support a small rise in OPEC crude output, and amid lingering worries on the possibility of a full-blown trade war between Beijing and Washington.
Brent crude futures were down 0.7% with US crude futures down 29 cents, or 0.4%.
(US$1 = 110.5600 yen)
(US$1 = 6.4978 Chinese yuan)