TOKYO (Oct 12): Benchmark Tokyo rubber futures ended down 1.4% on Wednesday, marking their first loss in seven sessions, as investors took profits after an overnight fall in oil prices and a rise in the yen against the dollar.
“With Shanghai futures halting recent strong gains, market participants took profits from the recent rally,” said a Tokyo-based broker.
The Tokyo Commodity Exchange rubber contract for March delivery <0#2JRU:> finished 2.6 yen lower at 179.7 yen (US$1.75) per kg. The benchmark contract hit a five-month high on Tuesday, supported by rising oil prices and firmer Shanghai futures.
Crude rubber inventories at Japanese ports stood at 7,809 tonnes as of Sept. 20, up 0.2% from the last inventory date, data from the Rubber Trade Association of Japan showed on Wednesday.
The US dollar was quoted around 103.53 yen, compared with around 103.80 yen on Tuesday afternoon.
Oil prices edged up after Tuesday’s falls, supported by record Indian crude imports and upcoming talks between OPEC producers and other oil exporters on curbing output to end a glut in the global market.
The most-active rubber contract on the Shanghai futures exchange for January delivery rose 40 yuan to finish at 14,165 yuan (US$2,124) per tonne, recouping earlier losses.
The front-month rubber contract on Singapore’s SICOM exchange for November delivery last traded at 150.20 US cents per kg, down 1.5 cents.
(US$1 = 102.9000 yen)
(US$1 = 6.6685 Chinese yuan)
