TOKYO (April 16): Benchmark Tokyo rubber futures tumbled more than 3% on Monday, sliding from a nearly two-week high hit in the previous session, as a plunge in Shanghai futures prompted heavy selling, dealers said.
“Tokyo market came under pressure after Shanghai took a beating,” said Toshitaka Tazawa, an analyst at commodities broker Fujitomi Co.
Tokyo Commodity Exchange (TOCOM) futures, which set the tone for rubber prices in Southeast Asia, shrugged off fears over the U.S.-led strike on Syria, as it looked like being a one-off event that would not escalate into a wider conflict, Tazawa said.
The TOCOM rubber contract for September delivery finished down 5.4 yen or 3% at 179.2 yen (US$1.67) per kg. Earlier in the session, it touched 179.0 yen, the lowest since April 9.
The most active rubber contract on the Shanghai futures exchange for September delivery dropped 345 yuan to finish at 11,135 yuan (US$1,774) per tonne, after touching the lowest since March 30 of 11,015 yuan earlier in the session.
“As global producers start stepping up output, rubber prices will likely stay bearish,” Tazawa said.
Rubber is tapped year-round but latex output drops during the dry wintering season, when trees shed leaves. Wintering in Thailand and Malaysia lasts from around February to April.
The front-month rubber contract on Singapore’s SICOM exchange for May delivery last traded at 135.8 U.S. cents per kg, down 3 cents.
(US$1 = 107.2000 yen)
(US$1 = 6.2784 Chinese yuan)
