TOKYO (July 21): Benchmark Tokyo rubber futures ended little changed on Tuesday as the impact of a weaker yen offset downward pressure from lower oil prices.
Tokyo Commodity Exchange (TOCOM) futures, which set the tone for tyre rubber prices in Southeast Asia, have lost momentum after gaining nearly 8 percent since hitting a two-and-a-half-month low on July 9.
The Tokyo Commodity Exchange rubber contract for December delivery finished 0.1 yen higher at 214.9 yen per kg, after settling down 1.1 yen on Friday. Japanese markets were closed on Monday for a national holiday.
“Overall, the market was in net selling positions, and that did not change as the market was stuck around 215 yen level,” said a source with a Tokyo-based broker.
The most-active rubber contract on the Shanghai futures exchange for January delivery rose 280 yuan to finish at 13,480 yuan per tonne.
Oil prices edged lower on Tuesday, dragged down by a firm dollar and ample supply of both crude and refined products.
The U.S. dollar hovered near five-week highs versus the yen on Tuesday after a top Federal Reserve official added to expectations that U.S. interest rates could be raised as early as September. It was quoted around 124.38 yen, compared with around 124.01 yen on Friday afternoon.
The front-month rubber contract on Singapore’s SICOM exchange for August delivery last traded at 146.70 U.S. cents per kg, down 0.9 cent.