TOKYO (March 6): Benchmark Tokyo rubber futures erased early falls to close little changed on Tuesday as a weaker yen offset losses in Shanghai futures, brokers said.
The US dollar was quoted around 106.09 yen, compared with around 105.52 yen on Monday afternoon.
A weaker yen makes commodities denominated in the Japanese currency cheaper for holders of other currencies.
Tokyo Commodity Exchange (TOCOM) futures, which set the tone for rubber prices in Southeast Asia, did not trade above a near one-month high hit a day earlier amid worries over a sustained rise in global rubber demand.
“There are concerns about slowing US economy, and it is hard to imagine a sustained rise in commodity demand as a result, which have been weighing on the market,” said a Japanese industry source.
The Tokyo Commodity Exchange rubber contract for August delivery finished 0.1 yen higher at 194 yen (US$1.83) per kg.
The most-active rubber contract on the Shanghai futures exchange for May delivery fell 155 yuan to finish at 12,930 yuan (US$2,040) per tonne.
The front-month rubber contract on Singapore’s SICOM exchange for April delivery last traded at 147.3 US cents per kg, down 1.1 cents.
(US$1 = 106.1800 yen)
(US$1 = 6.3396 Chinese yuan)
