Benchmark Tokyo rubber futures shed early gains to end lower on Monday, hitting their lowest since October 2016, weighed down by weaker oil prices and on concerns about oversupply.
The Tokyo Commodity Exchange (TOCOM) rubber contract for November delivery finished 1.9 yen lower, or 1.1 percent, at 171.5 yen ($1.57) per kg. Earlier in the session, the contract hit the lowest since Oct. 7, 2016 of 171.0 yen.
The most-active rubber contract on the Shanghai futures exchange for September delivery rose 70 yuan to finish at 10,470 yuan ($1,603) per tonne.
The front-month rubber contract on Singapore's SICOM exchange for July delivery last traded at 134.7 US cents per kg, down 0.7 cent.
"The rubber market is bearish amid worries about excess supply as producer countries are stepping up output after the dry wintering season," Hiroyuki Kikukawa, general manager of research, Nissan Securities said.
Rubber is tapped year-round, but latex output drops during the dry wintering season, when trees shed leaves. Wintering in Thailand and Malaysia lasts from around February to May.
The TOCOM futures, which set the tone for rubber prices in Southeast Asia, have fallen about 15 percent over the past month, but they may stay under pressure amid fears over global trade conflicts triggered by Trump administration, Kikukawa said.
Comments
Comments are closed.