TOKYO (June 6): Benchmark Tokyo rubber futures hit a seven-month low on Tuesday, coming under pressure from the yen’s advance to a six-week high against the dollar, brokers said.
Tokyo Commodity Exchange (TOCOM) futures, which set the tone for tyre rubber prices in Southeast Asia, were also hit by concerns about oversupply in the region.
“Overall in Thailand and other regions in Asia, the market is oversupplied,” said a source with a Tokyo-based broker.
The dollar has been on the defensive on Tuesday, with investors cautious ahead of Britain’s election, a European Central Bank meeting and former FBI Director James Comey’s testimony to a Senate committee this week.
The Tokyo Commodity Exchange rubber contract for November delivery finished 5.7 yen lower at 185.8 yen (US$1.69) per kg, after touching 182.8 yen, the lowest since Nov. 7, earlier in the session.
The most-active rubber contract on the Shanghai Futures Exchange for September delivery fell 50 yuan to finish at 12,455 yuan (US$1,833) per tonne, after hitting a nine-month low on Monday.
The front-month rubber contract on Singapore’s SICOM exchange for July delivery last traded at 142.10 US cents per kg, up 2.3 US cents.
(US$1 = 109.6700 yen)
(US$1 = 6.7949 Chinese yuan )
