TOCOM rubber erases gains amid trade war worries

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TOKYO (July 10): Benchmark Tokyo rubber futures erased early gains by the close on Tuesday as anxieties about the Sino-US trade war cast a long shadow over investor sentiment.

On Friday, both and the United States slapped tit-for-tat tariffs on US$34 billion worth of each other’s goods, stirring fears of a prolonged dispute. The row has rattled Chinese financial markets, with the yuan suffering its worst monthly loss on record in .

Tokyo Commodity Exchange () futures, which set the tone for in Southeast , also came under pressure from weaker Shanghai futures.

“The US-China tension is overall not good for commodities overall,” said a Japanese trading source.

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The Tokyo Commodity Exchange rubber contract for December delivery finished 1.4 yen lower at 173.2 yen (US$1.56) per kg, after touching a 21-month low of 166.9 yen last Thursday.

The most-active rubber contract on the for September delivery fell 80 yuan to finish at 10,335 yuan (US$1,562) per tonne.

The front-month rubber contract on Singapore’s SICOM exchange for August delivery last traded at 130.7 US cents per kg, down 1.1 cent.

(US$1 = 111.0200 yen)
(US$1 = 6.6146 Chinese yuan)

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