TOKYO, Oct 14 (Reuters) – Benchmark Tokyo rubber futures ended down 0.3 percent on Wednesday, coming under pressure from an extended decline in the dollar against the yen and lower oil prices. Tokyo Commodity Exchange (TOCOM) futures, which set the tone for tyre rubber prices in Southeast Asia, stood about 19 percent lower from the end of last year amid concerns about slowing rubber demand, especially in top consumer China.
The Tokyo Commodity Exchange rubber contract for March delivery JRUc6 0#2JRU: finished 0.5 yen lower at 173.7 yen per kg after falling as much as 2 percent earlier. “Unless there’s really a sudden move in the exchange rate, the markets are stuck in ranges,” said a source with a Tokyo-based dealer.
Oil eased further below $50 a barrel on Wednesday, falling for a third day, on concern a supply glut will persist and demand slow down as economic growth moderates in No.2 consumer China.
O/R The U.S. dollar was quoted around 119.60 yen JPY= , compared with around 119.72 yen on Tuesday afternoon. USD/ The most-active rubber contract on the Shanghai Futures Exchange for January delivery SNRcv1 finished unchanged at 11,710 yuan per tonne.
The front-month rubber contract on Singapore’s SICOM exchange for November delivery STFc1 last traded at 126.9 U.S. cents per kg, down 1.1 cent.
(Reporting by Osamu Tsukimori; Editing by Subhranshu Sahu)
