TOCOM hits 21-month low on weak Shanghai futures on July 4
Benchmark Tokyo rubber futures hit their lowest level in 21 months on Wednesday, tracking weak Shanghai futures.
Tokyo Commodity Exchange (TOCOM) futures, which set the tone for rubber prices in Southeast Asia, have also been under pressure ahead of July 6, when US tariffs on US$34 billion worth of Chinese goods are set to kick in. Beijing has said it would retaliate with tariffs on US products.
"Amid worries over trade tensions, recent bullish crude prices have not been providing support to rubber," said a Japanese trading source.
The Tokyo Commodity Exchange rubber contract for December delivery finished 1.2 yen lower at 171.1 yen (US$1.55) per kg, after hitting the lowest since Oct 5, 2016 at 168.3 yen earlier in the session.
The most-active rubber contract on the Shanghai futures exchange for September delivery fell 75 yuan to finish at 10,410 yuan per tonne.
The front-month rubber contract on Singapore's SICOM exchange for August delivery last traded at 131.60 US cents per kg, down 1.1 cents.
(US$1 = 110.3900 yen)
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