BANGKOK, July 14 (Reuters) – Tokyo rubber futures slipped on Monday as concerns over rising rubber inventories spurred stop-loss selling, but firmness in oil prices still lent support, dealers said.
The Tokyo Commodity Exchange rubber contract for December delivery slipped 0.8 yen to finish at 200.5 yen ($1.98)per kg.
“Investors liquidated contracts to stop losses as it signalled weak demand in China, but TOCOM rubber was still supported by firm oil prices,” said a Bangkok-based dealer.
Rubber inventories in warehouses monitored by the Shanghai Futures Exchange rose 1.8 percent from last Friday, the exchange said on Friday.
Brent crude held steady above $106 a barrel on Monday, hovering just off three-month lows, as the potential for renewed supply disruptions put a floor under prices that have been tumbling since the last week of June.
Dealers said TOCOM prices could rise further on Tuesday after finishing above a major support level of 200 yen.
The most-active rubber contract on the Shanghai futures exchange for September delivery rose 65 yuan to finish at 14,010 yuan ($2,300)per tonne.
The front-month rubber contract on Singapore’s SICOM exchange for August delivery was last traded at 166.4 U.S. cents per kg, down 1.3 cents.
($1 = 101.4800 Japanese yen)
($1 = 6.2040 Chinese yuan)