Benchmark Tokyo rubber futures fell on Wednesday on weak crude oil prices, and as the market remained bearish on the commodity.
Tokyo Commodity Exchange (TOCOM) futures, which set the tone for rubber prices in Southeast Asia, have been under pressure from high inventories and flat demand.
Tumbling oil prices and plunging global stocks further weighed on the commodity this week.
“The market sentiment of avoiding risks has been growing as commodity prices fall in general and especially as oil prices tumbled again,” said Cao Lu, a senior analyst with Orient Futures.
“On the other hand, there are no favourable factors supporting rubber prices and market confidence has been quite weak. Rubber market continues to be bearish.”
The Tokyo Commodity Exchange rubber contract for June delivery finished 2.2 yen ($0.0199) lower at 168 yen per kg.
TOCOM’s technically specified rubber (TSR) 20 futures contract for June delivery rose 1.3 yen to close at 145.6 yen per kg.
The most-active rubber contract on the Shanghai futures exchange for May delivery fell 90 yuan ($13.08) to finish at 11,040 yuan per tonne.
The front-month rubber contract on Singapore’s SICOM exchange for January delivery last traded at 124.4 U.S. cents per kg, down 2.5 cents.
