TOKYO (March 20): Benchmark Tokyo rubber futures slid to a one-month low on Tuesday, falling for a third consecutive session, as weakness in Shanghai futures and Japanese stocks prompted fresh selling, dealers said.
The Tokyo Commodity Exchange (TOCOM) rubber contract for August delivery finished 4.0 yen, or 2.1%, lower at 187.0 yen (US$1.76) per kg, after hitting the lowest since Feb 22 of 186.5 yen earlier in the session.
“On top of Shanghai’s loss, weakening equities market has weighed on investors’ sentiment,” said Hiroyuki Kikukawa, general manager of research at Nissan Securities.
The most-active rubber contract on the Shanghai futures exchange for May delivery plunged 280 yuan to finish at 12,240 yuan (US$1,933) per tonne.
Related Post
Japan’s Nikkei share average fell on Tuesday as domestic technology stocks tracked declines by US counterparts on Wall Street, but losses were pegged as investors refrained from taking large positions before a meeting of the US Federal Reserve.
“Given weak fundamentals with export curbs by rubber producers ending at the end of this month, the TOCOM may dive below a 180-yen mark,” Kikukawa said.
A group of three of the world’s top natural rubber producers is cutting exports by up to 350,000 tonnes in total from December until March in a bid to address declining global prices.
The front-month rubber contract on Singapore’s SICOM exchange for April delivery last traded at 142.5 US cents per kg, down 2.3 cent.
Financial markets in Japan will be closed on Wednesday for a national holiday.
(US$1 = 6.3321 Chinese yuan)
(US$1 = 106.4100 yen)
