TOKYO (Oct 13): Benchmark Tokyo rubber futures extended declines on Thursday, as the market came under pressure from falling oil prices and weak Shanghai futures.
Tokyo Commodity Exchange (TOCOM) futures, which set the tone for tyre rubber prices in Southeast Asia, erased early gains of more than 1% to near five-month highs.
“TOCOM has been swayed by oil and Shanghai futures,” said a source with a Tokyo-based broker.
The Tokyo Commodity Exchange rubber contract for March delivery finished 1.9 yen lower at 177.8 yen per kg.
Oil prices fell on Thursday after OPEC said its production had risen to the highest level in at least eight years, and following reports of an increase in U.S. crude stockpiles.
The most active rubber contract on the Shanghai Futures Exchange for January delivery fell 125 yuan to finish at 14,025 yuan per tonne.
The front-month rubber contract on Singapore’s SICOM exchange for November delivery last traded at 147.80 U.S. cents per kg, down 0.8 cent.
