TOCOM ends down 2 pct on weak oil, supply glut

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TOKYO (Dec 1): Benchmark Tokyo rubber futures ended down 2 percent on Monday after touching a three-week low, pressured by oil's extended decline to a five-year low and worries over a supply glut.

Tokyo Commodity Exchange (TOCOM) futures, which set the tone for tyre rubber prices in Southeast Asia, have fallen nearly 30 percent this year and are trading not far above five-year lows hit last month amid an oversupply.

The Tokyo Commodity Exchange rubber contract for May delivery finished 4 yen lower at 196.2 yen($1.65) per kg. The benchmark fell as low as 195.7, the lowest since Nov. 7.

The excess supplies have been hanging over the market at a time when global prices are already low because of weak demand.

The most-active rubber contract on the Shanghai futures exchange for May delivery fell 345 yuan to finish at 12,350 yuan ($2,009) per tonne after falling as much as 4.5 percent earlier.

"Crude and grains are all down and so is rubber," said a Tokyo-based broker. "Crude is in oversupply and so is rubber. Unless (TOCOM) falls to 120-130 yen level, the producers would probably not halt production."

Crude rubber inventories at Japanese ports stood at 9,791 tonnes as of Nov. 20, down 5.8 pct from 10 days earlier, data from the Rubber Trade Association of Japan showed on Monday.

The front-month rubber contract on Singapore's SICOM exchange for January delivery last traded at 148.00 U.S. cents per kg, down 4.1 cents. ($1 = 118.8500 Japanese yen) ($1 = 6.1464 Chinese yuan)

TOKYO (Dec 1): Benchmark Tokyo rubber futures ended down 2 percent on Monday after touching a three-week low, pressured by oil's extended decline to a five-year low and worries over a supply glut.

Tokyo Commodity Exchange (TOCOM) futures, which set the tone for tyre rubber prices in Southeast Asia, have fallen nearly 30 percent this year and are trading not far above five-year lows hit last month amid an oversupply.

The Tokyo Commodity Exchange rubber contract for May delivery finished 4 yen lower at 196.2 yen($1.65) per kg. The benchmark fell as low as 195.7, the lowest since Nov. 7.

The excess supplies have been hanging over the market at a time when global prices are already low because of weak demand.

The most-active rubber contract on the Shanghai futures exchange for May delivery fell 345 yuan to finish at 12,350 yuan ($2,009) per tonne after falling as much as 4.5 percent earlier.

"Crude and grains are all down and so is rubber," said a Tokyo-based broker. "Crude is in oversupply and so is rubber. Unless (TOCOM) falls to 120-130 yen level, the producers would probably not halt production."

Crude rubber inventories at Japanese ports stood at 9,791 tonnes as of Nov. 20, down 5.8 pct from 10 days earlier, data from the Rubber Trade Association of Japan showed on Monday.

The front-month rubber contract on Singapore's SICOM exchange for January delivery last traded at 148.00 U.S. cents per kg, down 4.1 cents. ($1 = 118.8500 Japanese yen) ($1 = 6.1464 Chinese yuan)