TOKYO (May 25): Benchmark Tokyo rubber futures extended declines into a second session on Thursday, tracking weak Shanghai counterparts as the yuan jumped to a near two-month high against the dollar.
Tokyo Commodity Exchange (TOCOM) futures, which set the tone for tyre rubber prices in Southeast Asia, have fallen nearly 4% from a six-week high hit a day earlier, tracking losses in Shanghai futures after Moody’s downgraded the country’s credit rating.
Some traders said the Shanghai Futures Exchange’s announcement to raise intraday transaction fees for September delivery natural rubber futures were likely have a negative impact on the market overall.
The Tokyo Commodity Exchange rubber contract for October delivery finished 1.1 yen lower at 227.6 yen (US$2.04) per kg. The front-month May contract expired on Thursday, closing 13 yen lower at 290 yen.
The most-active rubber contract on the Shanghai Futures Exchange for September delivery fell 120 yuan to finish at 13,750 yuan (US$2,001) per tonne.
The front-month rubber contract on Singapore’s SICOM exchange for June delivery last traded at 145 US cents per kg, down 7.5 US cents.
(US$1 = 111.7200 yen)
(US$1 = 6.8729 Chinese yuan)
