Tokyo rubber inches down

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Tokyo Commodity Exchange (TOCOM) futures reversed early gains to close lower on Monday, as a report that a major trader suspended operations weighed on market sentiment and pressured on prices, dealers said.

The benchmark TOCOM contract for March delivery finished 1.2 yen lower 155.9 yen ($1.46) per kg.

TOCOM’s TSR 20 futures contract for April delivery closed unchanged at 148.9 yen per kg.

The front-month rubber contract on ’s SICOM exchange for November delivery last traded at 125.2 US cents per kg, up 0.1%, but still hovering near an about 9-month low hit last Friday.

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’s largest rubber trader ceased operations late last month after failing to honour contracts with its local and foreign business partners, according to the Financial Times.

“Market players bet more selling to come as with long positions will unwind their positions to generate cash amid uncertainty over the Chinese trader’s saga,” said a Tokyo-based dealer who declined to be named.

The Shanghai Futures Exchange was closed between October 1 and October 7 for the National Day holiday and will reopen on October 8. Japan’s benchmark Nikkei stock average slipped in subdued trade on Monday, pressured by concerns that Sino-US trade talks may make little headway this week, although moderate US jobs growth in September offered some support.

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