TOKYO (July 9): Benchmark Tokyo rubber futures extended gains on Monday after hitting a 21-month low last Thursday, in line with firm Shanghai futures and oil prices.
Oil prices rose as investors focused on tight market conditions after data late last week showed US crude inventories fell to their lowest in more than three years.
Despite higher close, growing rubber inventories in Japan and China have been weighing on Asian rubber prices, while many investors focused on any fallout from the US imposition of tariffs on Chinese goods at the end of last week, which prompted immediate retaliation from China.
“There may be some compromise in the end, but it will be negative for both citizens,” said a Japanese trading source.
The Tokyo Commodity Exchange rubber contract for December delivery finished 3.2 yen higher at 174.6 yen (US$1.58) per kg.
Rubber inventories in warehouses monitored by the Shanghai Futures Exchange rose 1.2% from last Friday, the exchange said on Friday.
The most-active rubber contract on the Shanghai futures exchange for September delivery rose 140 yuan to finish at 10,495 yuan (US$1,586) per tonne.
The front-month rubber contract on Singapore’s SICOM exchange for August delivery last traded at 131.4 US cents per kg, up 2.1 cents.
(US$1 = 110.4500 yen)
(US$1 = 6.6190 Chinese yuan)
