TOKYO (Aug 28): Benchmark Tokyo rubber futures touched a one-week low on Tuesday, tracking weakness in Shanghai and Singapore futures, amid worries of oversupply despite floods in a key producing region in India.
Tokyo Commodity Exchange (TOCOM) futures, which set the tone for rubber prices in Southeast Asia, have barely got support from a projected output slowdown in India, the world’s sixth biggest producer, whose output is likely to fall 13.5% from a year ago in the fiscal year to March 2019.
“There’s concern about oversupply in the market as Shanghai stockpiles are on the rise,” said a Japanese trader.
The Tokyo Commodity Exchange rubber contract for new February delivery ended at a one-week low of 172.2 yen, down 1.6% from its debut price of 175 yen on Tuesday.
The most-active rubber contract on the Shanghai futures exchange for January delivery fell 235 yuan to finish at 12,275 yuan (US$1,786) per tonne.
The front-month rubber contract on Singapore’s SICOM exchange for September delivery was last traded at a near two-week low of 131.5 US cents per kg, down 1.6%.
(US$1 = 6.8740 Chinese yuan renminbi)
