Benchmark Tokyo rubber futures fell to a nearly 2-week low on Monday as supply concerns due to recent floods in Thailand eased, and following a plunge in Shanghai futures. "Shanghai futures apparently took a beating after the estimated impact from Thai floods was downgraded," said Toshitaka Tazawa, analyst at Fujitomi Co.
Thailand, the world's biggest rubber producer, will lose around 7.6 percent of its rubber output in 2017 after flooding hit the main growing region, lower than the previous week's estimate of 10 percent, an official at the Rubber Authority of Thailand told Reuters on Friday.
The Tokyo Commodity Exchange (TOCOM) rubber contract for June delivery finished 2.0 yen, or 0.7 percent, lower at 286.3 yen ($2.52) per kg. It touched the lowest since January 11 of 282.3 yen earlier in the session.
The most-active rubber contract on the Shanghai Futures Exchange for May delivery tumbled 605 yuan to finish at 19,845 yuan ($2,896.02) per tonne. "I expect to see more position adjustments this week ahead of the week-long Lunar New Year holiday in China," he added.
The Lunar New Year holiday starts January 27 in China. The front-month rubber contract on Singapore's SICOM exchange for February delivery last traded at 209.8 US cents per kg, up 2.1 cent.
