TOCOM rubber ends down 0.7 pct on weak Shanghai futures

Benchmark Tokyo rubber futures ended down 0.7 percent on Wednesday, retreating from a two-week high, pulled down by a stronger yen and weaker Shanghai prices.

Tokyo Commodity Exchange (TOCOM) futures, which set the tone for tyre rubber prices in Southeast Asia, also came under pressure after gold prices fell to a near five-year low amid dim demand outlook.

The Tokyo Commodity Exchange rubber contract for December delivery finished 1.4 yen lower at 213.5 yen per kg, marking the lowest settlement in a week.

The contract hit a high of 218 yen in Tuesday’s night session, the highest since July 6. The night session forms part of the next trading day.

“Overall, the Shanghai players were in net selling positions for most commodities, and because the Shanghai markets are vastly larger in scale than TOCOM, TOCOM could not but follow suit,” a source with a Tokyo-based dealer said.

The U.S. dollar weakened further in the afternoon to around 123.56 yen, compared with around 124.38 yen on Tuesday afternoon.

The most-active rubber contract on the Shanghai futures exchange for January delivery fell 50 yuan to finish at 13,275 yuan per tonne.

The front-month rubber contract on Singapore’s SICOM exchange for August delivery last traded at 146.60 U.S. cents per kg, down 2.4 cents.