TOKYO, July 25 (Reuters) – Tokyo rubber futures edged down on Thursday after six straight sessions of gains as weaker oil prices and the yen’s gain against the U.S. dollar prompted profit-taking, traders said.
The benchmark rubber contract on the Tokyo Commodity Exchange (TOCOM) for December delivery dropped 0.5 percent to settle at 255.8 yen per kg, after closing at a seven-week high the day before.
“A drop in oil prices and rebound in the yen in the afternoon weakened market sentiment,” said Hiroyuki Kikukawa, general manager at Nihon Unicom Inc.
Brent crude slipped below $107 a barrel on Thursday after weak Chinese economic data dimmed the outlook for fuel demand in the world’s No. 2 oil consumer, while its spread with U.S. crude widened as investors took profits.
The yen moved higher to 99.75 yen against the U.S. dollar in afternoon Asian trade, compared with above-100 levels in earlier trade.
“Investors in the rubber market are reluctant to keep buying as they worry about the slowing Chinese economy and excess rubber supply,” Kikukawa said.
The most-active rubber contract on the Shanghai futures exchange for January delivery rose 190 yuan ($30.96) to 18,555 yuan per tonne on Thursday.
The front-month rubber contract on Singapore’s SICOM exchange for August delivery last traded 0.90 cents up at 235 U.S. cents per kg.
($1 = 6.1360 Chinese yuan)
(Reporting by Yuka Obayashi; Editing by Prateek Chatterjee)
Source: Reuters
