TOCOM ends down 1.1 pct amid demand worries

-A +A

TOKYO (Nov 4): Benchmark Tokyo rubber futures ended down 1.1 percent on Tuesday and are expected to fall this week due to sluggish demand from top buyer China and as crude oil prices extend their losing streak.

Tokyo Commodity Exchange (TOCOM) futures, which set the tone for tyre-grade rubber prices in Southeast Asia, settled below the key 200-yen level on Tuesday.

The rubber contract for April delivery finished down 2.3 yen at 199.8 yen($1.76) per kg.

"Government efforts have had little impact. Moreover, the steep fall in crude oil prices have made it difficult for rubber to sustain recent gains," a Singapore-based dealer said.

Thailand's government last month announced a series of measures to support rubber farmers reeling from a slump in global prices to five-year lows.

The steps included nearly $1 billion to finance rubber purchases by the state-run Rubber Estate Organisation, which oversees stockpiles in the world's biggest producer and exporter of the commodity.

The most-active rubber contract on the Shanghai futures exchange for January delivery fell 300 yuan to finish at 12,840 yuan ($2,100) per tonne.

The front-month rubber contract on Singapore's SICOM exchange for December delivery last traded at 150.90 U.S. cents per kg, down 3.5 cents. (1 US dollar = 6.1147 Chinese yuan) (1 US dollar = 113.6100 Japanese yen)