TOKYO (Aug 2): Benchmark Tokyo rubber futures ended down 1.2% on Tuesday, as the market came under pressure from a fall in oil prices and a stronger yen against the dollar.
Tokyo Commodity Exchange (TOCOM) futures, which set the tone for tyre rubber prices in Southeast Asia, were pressured after oil prices tumbled more than 3% overnight as fuel markets continued to be dogged by excess production.
The Tokyo Commodity Exchange rubber contract for January delivery <0#2JRU:> finished 1.8 yen lower at 154.1 yen (US$1.51) per kg.
“The oil price and a stronger yen definitely put pressure on the market and there were no other incentives today,” said a source with a Tokyo-based broker.
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The US dollar was quoted around 102.22 yen, compared with around 102.54 yen on Monday afternoon. A stronger yen makes Japanese currency-denominated assets more expensive when purchased in other currencies.
The benchmark rubber contract on the Shanghai futures exchange for September delivery finished unchanged at 10,930 yuan (US$1,645) per tonne.
Shanghai rubber for January delivery became the most-active contract on Tuesday, rising 235 yuan to finish at 12,675 yuan.
The front-month rubber contract on Singapore’s SICOM exchange for September delivery last traded at 128.20 US cents per kg, down 0.6 cent.
(US$1 = 6.6461 Chinese yuan)
(US$1 = 102.3200 yen)
