TOKYO, Oct 27 (Reuters) – New benchmark Tokyo rubber futures fell more than 4 percent on Tuesday, hitting the lowest in more than 6 years, as weaker Shanghai futures and nagging worries over slowing demand in top buyer China dampened sentiment, dealers said. TheTokyo Commodity Exchange (TOCOM) new rubber contract for April delivery JRUc6 0#2JRU: fell 6.7 yen, or 4.1 percent, from an opening price of 165.2 yen to finish at 158.5 yen ($1.32) per kg. It earlier hit 157.1 yen, the lowest since July, 2009. TOCOM futures, which set the tone for tyre rubber prices in Southeast Asia, have fallen 37 percent from this year’s high of 247.9 yen in early June, amid oversupply concerns. The market started with a weaker tone as soft oil prices and an overnight drop in Shanghai futures prompted a flurry of selling at the opening, dealers said.
Oil prices fell on Tuesday, extending losses into a third week, on worries over a supply glut and with U.S.inventory data expected to show another increase in crude stocks.
O/R The most-active rubber contract on the Shanghai futures exchange for January delivery SNRcv1 fell 315 yuan to finish at 10,805 yuan ($1,701.12) per tonne. Jiong Gu, an analyst at Yutaka Shoji Co., said the market also lost ground because of rollovers. “Overall sentiment was weak, but I would say the market hit a 6-year low for no fresh fundamental reasons,” he said.
“Most of the trade was rollovers, buying March contracts and selling April contracts,” he added. The front-month rubber contract on Singapore’s SICOM exchange for November delivery STFc1 last traded at 125.0 U.S. cents per kg, up 1.6 cent.
($1 = 6.3517 Chinese yuan renminbi)
($1 = 120.4400 yen)
(Reporting by Yuka Obayashi; Editing by Ed Davies)