TOCOM FUTURES SLUMP AS OIL, STOCKS DECLINE
Benchmark Tokyo rubber futures fell more than 3 percent to a one-week low on Wednesday as declines in oil and the Tokyo Stock Exchange weighed on prices.
Tokyo Commodity Exchange (TOCOM) futures, which set the tone for tyre rubber prices in Southeast Asia, were also taking their cue from the bearish sentiment that is gripping markets as a fractious U.S. presidential election draws to a close amid signs the race is tightening.
With Japan on holiday on Thursday risk averse investors are stepping back.
"Japanese investors are liquidating their holdings before the public holiday tomorrow," said a Tokyo-based strategist for a rubber trading company.
The Tokyo Commodity Exchange rubber contract for April delivery fell 2.8 percent to 178 yen ($1.71)per kg. Earlier in the day, it fell to as low as 176.6 yen, the lowest level since Oct. 26.
The most-active rubber contract on the Shanghai futures exchange for January delivery fell 405 yuan to finish at 13,785 yuan ($2,037.69) per tonne.
The front-month rubber contract on Singapore's SICOM exchange for December delivery last traded at $1.46 per kg, down 2.3 cents.
- Tireworld Insight: Domestic tire makers eye overseas expansion
- Tireworld Insight: Price disparity severe between China's rubber exports and imports
- Tireworld Insight: China tire exports dependent on US market performance
- Tireworld Insight: SHFE rubber expected to move in tight range in short-term
- Tireworld Insight: Rubber futures to test near-term resistance at 15,000 yuan/tonne
- Tireworld Insight: China’s tire industry on track of rapid growth
