TOKYO: Benchmark Tokyo rubber futures ended down 1.2 percent on Tuesday, extending declines, weighed down by losses in global crude prices.
Tokyo Commodity Exchange (TOCOM) futures, which set the tone for tyre rubber prices in Southeast Asia, also came under pressure from profit-taking after the February contract expired on Monday, dealers said.
Brent oil prices extended declines on Tuesday, following a 2-percent slide in the previous session, amid oversupply worries.
Market participants are closely watching the outcome of a planned meeting by producers, including Thailand, Indonesia and Malaysia, this week to discuss measures to support prices.
Producers may discuss a range of issues including possibly trying to rein in existing rubber planting areas to curb production, some industry sources said, though it remained unclear if any concrete measure that would substantially raise rubber prices would be agreed.
“It would be pragmatic to not plant rubber after maturing trees are cut out,” said a source with a Tokyo-based dealer.
The Tokyo Commodity Exchange rubber contract for new August delivery finished 2.5 yen lower from the opening price at 213.5 yen per kg. The contract earlier dropped to its lowest since February 12 at 212.1 yen.
The US dollar was quoted around 119.10 yen, compared with about 118.96 on Monday afternoon.
Shanghai futures will resume trading on Wednesday following the week-long Lunar New Year holidays.
The front-month rubber contract on Singapore’s SICOM exchange for March delivery last traded at 137.80 US cents per kg, down 1.9 cent.
– Reuters
