TOCOM ends down after hitting near 4-year high

-A +A

TOKYO (Jan 17): Benchmark Tokyo rubber futures ended down on Tuesday after hitting a near four-year high earlier on profit-taking and a stronger yen against the dollar.

Tokyo Commodity Exchange (TOCOM) futures, which set the tone for tyre rubber prices in Southeast Asia, hit a high of 308.6 yen, the highest since Feb 20, 2013, amid worries over supply tightness due to continued rains in major exporter Thailand.

"The market came under pressure from some profit-taking and a stronger yen," said a Tokyo-based broker.

The dollar slipped to 113.61 yen, hitting its lowest level in more than five weeks, as Trump's protectionist comments rattled some investors.

The Tokyo Commodity Exchange rubber contract for June delivery finished 5.3 yen lower at 299.7 yen (US$2.64) per kg.

Widespread flooding in southern Thailand may cost 85–120 billion baht (US$2.4–US$3.4 billion), or 0.5–0.7% of gross domestic product (GDP), if they last for two-three months, the Thai Chamber of Commerce said on Tuesday.

Ivory Coast exported 471,904 tonnes of natural rubber from January through November 2016, up more than 19% from the same period in the previous year, provisional port data showed on Monday.

Crude rubber inventories at Japanese ports stood at 5,471 tonnes as of Dec 31, up 4.2% from the last inventory date, data from the Rubber Trade Association of Japan showed on Monday.

The most-active rubber contract on the Shanghai futures exchange for May delivery rose 100 yuan to finish at 21,250 yuan (US$3,092) per tonne after hitting 21,760 yuan earlier, the highest since Jan 3, 2014.

The front-month rubber contract on Singapore's SICOM exchange for February delivery last traded at 219.40 US cents per kg, down 2.7 US cents.

(US$1 = 113.4100 yen)
(US$1 = 6.8715 Chinese yuan)