The new benchmark Tokyo rubber futures contract dipped more than 2 percent from its opening on Thursday, shaking off earlier gains, after a plunge in Shanghai futures prompted a flurry of fresh selling, dealers said. The Tokyo Commodity Exchange (TOCOM) rubber contract for new December delivery finished 5.4 yen, or 2.3 percent, lower from its opening price of 234.5 yen at 229.1 yen ($1.86) per kg, retreating from a high of 234.9 yen, the highest since June 12.
The most-active rubber contract on the Shanghai futures exchange for September delivery fell 505 yuan, or 3.6 percent, to finish at 13,370 yuan ($2,153) per tonne. It earlier fell to 13,345 yuan, the lowest since April 24. The front-month rubber contract on Singapore’s SICOM exchange for July delivery last traded at 156.2 US cents per kg, down 3.3 cent. “A sharp decline in Shanghai futures added to pressure on TOCOM prices,” said Jiong Gu, an analyst at Yutaka Shoji Co. “Also, some investors who took the June delivery on Wednesday turned around and sold it for the forward-month delivery, such as the November contract. That suggests there is not much physical demand now,” Gu said.