TOKYO (July 26): Benchmark Tokyo rubber futures slid in thin trade on Wednesday, following a decline in Shanghai futures that offset an improved risk appetite backed by a sharp rebound in oil markets.
Oil prices firmed on Wednesday to hold near eight-week highs hit in the previous session, on expectations of a drawdown in US stocks and as a rise in shale oil production shows signs of slowing.
But the Tokyo Commodity Exchange (TOCOM) rubber contract for new January 2018 delivery finished down at 214.2 yen (US$1.92) per kg, 3.8 yen or 1.7% from an opening price of 218.0 yen.
“The TOCOM was under pressure as Shanghai lost ground,” said Satoru Yoshida, a commodity analyst with Rakuten Securities.
The most-active rubber contract on the Shanghai futures exchange for September delivery fell 215 yuan, or 1.58%, to finish at 13,420 yuan (US$1,986) per tonne.
“I believe rubber markets are still on a recovery track which started in early June,” Yoshida said, predicting that the TOCOM may try a key 220-yen level as soon as Shanghai breaks above a 14,000-yuan mark.
The front-month rubber contract on Singapore’s SICOM exchange for August delivery last traded at 149.0 US cents per kg, down 4.4 US cents.
(US$1 = 111.8200 yen)
(US$1 = 6.7558 Chinese yuan)
