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