TOCOM plunges to near 1-1/2-month low on selling by foreign funds on June 2

TOKYO:* Tokyo Commodity Exchange (TOCOM) futures plunged to a nearly 1-1/2-month low on Tuesday as foreign funds stepped up unwinding their long positions, although buying from end-users in late trade helped the market recover some of earlier losses.

* The benchmark TOCOM rubber contract for December delivery finished lower 4.2 yen, or 2.2%, at 191.0 yen ($1.76) per kg, after hitting the lowest since May 15 of 185.4 yen earlier in the session.

* “A quick unwinding by overseas funds which have held long positions since June triggered the TOCOM’s plunge in the mid-day,” said Hideshi Matsunaga, an analyst at Sunward Trading.

* “But once the benchmark hit near 185 yen level, commercial buyers which have kept short positions since last month started unwinding, causing some recovery,” he said.

* The most-active rubber contract on the Shanghai futures exchange for September delivery fell 90 yuan to finish at 11,325 yuan ($1,651) per tonne, after dipping to as low as 11,135 yuan, the lowest since March 29, earlier in the session.

* Some rubber farmers in Sumatra and Kalimantan are seeing production decline due to a fungal disease, Indonesia’s Coordinating Ministry for Economic Affairs said in a statement late on Monday.

* While a slowing economy and the trade war with the United States were initially held responsible for slides in China’s auto sales since April, most of the blame is now being laid on the poorly managed fast-tracking of new rules by the 15 cities and provinces, which account for more than 60% of sales in the world’s largest auto market.

* U.S. President Donald Trump said on Monday trade talks with China were underway and any deal would need to be somewhat tilted in favor of the United States.

* Japanese stocks eked out modest gains on Tuesday as investors were more circumspect after the previous day’s relief rally over U.S.-China trade truce.

* Oil gained on Tuesday as producer club OPEC agreed to extend supply cuts until next March, although prices were pressured by worries demand could ease amid hints of a slowdown in the global economy.

* TOCOM’s technically specified rubber (TSR) 20 futures contract for January delivery closed down 2.7% at 152.1 yen per kg

* The front-month rubber contract on Singapore’s SICOM exchange for August delivery last traded at 146.4 U.S. cents per kg, down 0.6%.