TOCOM declines on high inventories; demand seen capping fall
Benchmark Tokyo rubber futures fell marginally on Monday, tracking Shanghai futures, and hurt by higher inventories.
Tokyo Commodity Exchange (TOCOM) futures, which set the tone for rubber prices in Southeast Asia, had been supported by the yen's decline, but pressured by high rubber inventories.
"Rubber inventories are still quite high and destocking has been a bit slow," said Li Dongling, senior analyst with First Futures.
"But the decline will be capped as rubber imports haven't increased much and demand is quite good," Li said.
The Tokyo Commodity Exchange rubber contract for October delivery finished 1.1 yen lower at 192.3 yen per kg.
The most-active rubber contract on the Shanghai futures exchange for September delivery fell 80 yuan to finish at 11,600 yuan per tonne.
The front-month rubber contract on Singapore's SICOM exchange for June delivery last traded at 141.2 US cents per kg, down 1 cent.
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