Benchmark Tokyo rubber futures rebounded on Thursday, snapping a 3-day losing streak, as investors covered short positions after the prices had dropped to fresh 7-year lows, but tumbling Shanghai stock prices and weaker oil prices capped gains. The Tokyo Commodity Exchange rubber contract for June delivery finished 0.6 yen higher at 148.8 yen ($1.27) per kg. It earlier slid to 146.2 yen, the lowest since March 23, 2009.
"Investors wanted to unwind short positions as they saw a risk of sharp rebound in slumping oil prices and as the rubber prices have been overshot," said Hiroyuki Kikukawa, general manager at Nihon Unicom Inc. The most-active rubber contract on the Shanghai futures exchange for May delivery declined 50 yuan to finish at 10,080 yuan ($1,529.85) per tonne. The front-month rubber contract on Singapore's SICOM exchange for February delivery last traded at 106.7 US cents per kg, down 2.5 cent.