Benchmark Tokyo rubber futures extended losses into a third session on Tuesday, hitting fresh 10-week lows, as investors unwound long positions after Shanghai futures tumbled, and amid concerns over the Greek debt crisis and falling stock prices in China.
The Tokyo Commodity Exchange (TOCOM) rubber contract for December delivery finished 1.8 yen, or 0.8 percent, lower at 213.5 yen ($1.74) per kg. It earlier slid to a low of 213.3 yen, the lowest since April 28.
“Trade was slow as investors were hesitant to take risk because the fate of the Greek financial crisis is murky and it was unclear whether China’s measures to support stock prices would work,” said Satoru Yoshida, commodity analyst at Rakuten Securities.
Despite a slew of emergency rescue measures announced over the weekend, China’s main stock indexes slumped over 5 percent at one point on Tuesday although they ended the session down less than 2 percent, aided by intensified buying of index heavyweights listed in Shanghai.
Affected by a slump in China’s stock prices, the most-active rubber contract on the Shanghai futures exchange for September delivery fell 430 yuan, or 3.3 percent, to finish at 12,515 yuan ($2,015.88) per tonne. It earlier dipped to as low as 12,450 yuan, the lowest since April 13.
“The market sentiment is weak, but the TOCOM benchmark may rebound a bit soon as it is near a technical support level,” Yoshida said.
The TOCOM futures, which set the tone for tyre rubber prices in Southeast Asia, have lost 14 percent since scoring a 16-month high in early June.
The dollar inched slightly higher to 122.60, nearly a full yen above its six-week low of 121.7 yen hit on Monday as the Greek turmoil heightened the Japanese currency’s safe-haven appeal.
The front-month rubber contract on Singapore’s SICOM exchange for August delivery last traded at 147.2 U.S. cents per kg, down 2.0 cent.
