TOKYO, June 8 (Reuters) – Benchmark TOCOM rubber futures slid on Wednesday, hovering near a 10-day low hit on Monday, as an overnight drop in Shanghai futures weighed on market sentiment while the firm yen added to pressure.
The Tokyo Commodity Exchange rubber contract for November delivery JRUc6 0#2JRU: was down 0.7 yen, or 0.5 percent, at 156.3 yen ($1.46) per kg by 0041 GMT, after falling 1.5 percent the previous day. It earlier hit a low of 155.6 yen, near the Monday’s bottom of 155.0 yen which marked the lowest since May 25.
The most-active rubber contract on the Shanghai futures exchange for September delivery SNRcv1 fell 255 yuan overnight to 10,370 yuan ($1,578.15) per tonne.
Global natural rubber output could rise just 0.3 percent in 2016 from a year ago as a drop in yields are seen offsetting expansion in the tapping area, the Association of Natural Rubber Producing Countries (ANRPC) said in a statement on Tuesday.
The World Bank cut its 2016 global growth forecast on Wednesday to 2.4 percent from the 2.9 percent estimated in January due to stubbornly low commodity prices, sluggish demand in advanced economies, weak trade and diminishing capital flows.
Japan’s economy expanded at a 1.9 percent annualised rate in the first quarter of this year, revised up from a preliminary reading of 1.7 percent growth, Cabinet Office data showed on Wednesday.