Tuesday 06 Jun 2023
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TOKYO (Jan 31): Benchmark Tokyo rubber futures ended down 5.7% on Tuesday after TOCOM requested its member-brokers to submit reports detailing their customers' positions after prices surged amid supply worries in the wake of floods in Thailand.

TOCOM said it issued the notice on Monday and members are required to respond by Wednesday.

In absence of Shanghai futures due to lunar New Year holidays, TOCOM futures, which set the tone for tyre rubber prices in Southeast Asia, hit 366.7 yen in Monday's night session, the highest since September 2011.

Prices started falling after that, while Thai rubber exporters say they have enough of the commodity in stockpiles to ensure only minimal disruption to scheduled shipments in the wake of deadly floods in key growing regions.

The Tokyo Commodity Exchange rubber contract for July delivery finished 20.1 yen lower at 331.3 yen per kg.

"There have been some powerful speculative buys which have bolstered prices in the TOCOM over the past two sessions despite the absence of Chinese speculators who have led a rally in Shanghai and Tokyo rubber markets since late last year," a Tokyo-based dealer said.

The front-month rubber contract on Singapore's SICOM exchange for February delivery was last traded at 224.80 US cents per kg, up 1.1 US cent.


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