TOKYO (Jan 6): Benchmark Tokyo rubber futures extended declines on Friday tracking weak Shanghai futures despite a slight recovery in the dollar against the yen.
Tokyo Commodity Exchange (TOCOM) futures, which set the tone for tyre rubber prices in Southeast Asia, have fallen from a 3½-year peak of 291.7 yen hit on Dec. 16 as the yen has gained strength against the dollar.
The Tokyo Commodity Exchange rubber contract for June delivery finished 5.6 yen, or 2.1%, lower at 267.5 yen (US$2.30) per kg. For the week, it rose 1.4%.
“Both Tokyo and Shanghai markets seem to be facing difficulty climbing further on strong currencies in both nations,” following last month’s rally to multiple-year highs, said a Tokyo-based broker.
The most-active rubber contract on the Shanghai Futures Exchange for May delivery fell 470 yuan to finish at 17,855 yuan (US$2,580) per tonne.
The front-month rubber contract on Singapore’s SICOM exchange for February delivery last traded at 193 US cents per kg, down 3.2 US cents.
(US$1 = 116.1800 yen)
(US$1 = 6.9205 Chinese yuan)
