Tokyo Commodity Exchange (TOCOM) futures hit a nine-month low on Monday, after trade war between the United States and China escalated over the weekend, fuelling concerns about the global economy. The benchmark TOCOM rubber contract for January delivery finished 3.6 yen, or 2.2%, lower at 162.2 yen ($1.54) per kg. It hit its lowest level since November 26, 2018 of 155.4 yen earlier in the session, but it pared earlier losses in late trade.
The most-active rubber contract on the Shanghai futures exchange for September delivery rose 95 yuan to finish at 11,500 yuan ($1,621) per tonne. China's new technically specified rubber (TSR) 20 futures contract was last up 85 yuan at 9,905 yuan per tonne. TOCOM's TSR 20 futures contract for February delivery closed down 3.0% at 141.0 yen per kg.
The front-month rubber contract on Singapore's SICOM exchange for September delivery last traded at 129.1 US cents per kg, up 0.2%. China is willing to resolve its trade dispute with the United States through "calm" negotiations and resolutely opposes the escalation of the conflict, Vice Premier Liu He, who has been leading the talks with Washington, said on Monday. The increasingly bitter trade war between the world's two largest economies sharply escalated on Friday, with both sides levelling more tariffs on each other's exports.
