TOKYO: Benchmark Tokyo rubber futures shed early gains to mark a third consecutive session of declines on Monday as weak Singapore futures and oil prices weighed.
Tokyo Commodity Exchange (TOCOM) futures, which set the tone for rubber prices in Southeast Asia, came under pressure from Singapore futures market.
“Despite the recent floods in Indonesia’s rubber-producing area, there seems to be no change in oversupply of rubber,” said a Japanese trading source.
The Tokyo Commodity Exchange rubber contract for January delivery finished 0.6 yen lower at 175.3 yen ($1.59) per kg.
The front-month contract for August delivery expired on Monday, ending 0.7 yen higher at 162.7 yen.
The most-active rubber contract on the Shanghai futures exchange for January delivery rose 10 yuan to finish at 12,515 yuan ($1,821) per tonne.
The front-month rubber contract on Singapore’s SICOM exchange for September delivery last traded at 134.1 U.S. cents per kg, down 1.5 cents after touching a one-week low earlier in the session.