Tokyo Commodity Exchange (TOCOM) futures gained on Tuesday as the yen weakened, although Shanghai rubber fell as a new contract weighed on prices. China will start trading TSR20 rubber futures from August 12, the Securities Regulatory Commission said earlier this month. "With the new contract, traders will gradually move away as it will be more internationally used," said a Singapore-based trader. The benchmark TOCOM rubber contract for December delivery rose 1.7% to 178.3 yen ($1.65) per kg.
Meanwhile, the most-active rubber contract on the Shanghai futures exchange for September delivery declined 1.2% to settle at 10,510 yuan ($1,528.55) per tonne. TOCOM's technically specified rubber (TSR) 20 futures contract for January delivery was at 153.1 yen per kg. The front-month rubber contract on Singapore's SICOM exchange for August delivery last traded at 139.9 US cents per kg, down 0.7%. "Prices will go lower soon, there is a lot of supply and a consumption decline," said an analyst in China, referring to TOCOM's prices.
The US dollar was last quoted at 108.05 yen on Tuesday, compared with 107.9 on Monday. Oil prices dipped, extending losses from the previous session, as output in the US Gulf of Mexico resumed after Hurricane Barry and as US shale production is set to rise to a record. Japan's benchmark Nikkei stock average was down 0.7%.
