TOKYO (July 28): Benchmark Tokyo rubber futures fell nearly 5% on Friday and marked its first weekly fall in three, as a plunge in Shanghai futures triggered selling in Tokyo.
The Tokyo Commodity Exchange (TOCOM) rubber contract for January delivery finished 10 yen, or 4.7%, lower at 204.5 yen (US$1.84) per kg, after touching its lowest since July 19 of 204.3 yen earlier in the session. It fell 4.7% on week.
“Shanghai led the way, with sudden and massive selling pressure,” said Jiong Gu, an analyst at Yutaka Shoji Co.
The most-active rubber contract on the Shanghai futures exchange for January delivery tumbled 920 yuan to finish at 15,090 yuan (US$2,239) per tonne.
“Some Chinese investors were forced to sell to cut losses in their holdings of September contract in Shanghai, especially after the contract dove below 13,000 yuan,” Gu said.
The Shanghai’s September contract, the benchmark until early this week, slid 945 yuan to end at 12,500 yuan per tonne.
“We have to see if Shanghai is done with selling, but even if selling pressure continues, TOCOM will likely have a support near the key 200-yen mark,” Gu said.
The front-month rubber contract on Singapore’s SICOM exchange for August delivery last traded at 143.9 US cents per kg, down 5.2 US cent.
(US$1 = 111.2400 yen)
(US$1 = 6.7410 Chinese yuan renminbi)
