TOCOM extends gains, but trades near 26-month low

TOKYO: Benchmark Tokyo rubber futures extended gains on Wednesday but were trading near a 26-month low hit a day earlier amid consistent worries over weak global demand.

"Simply put, the market is in oversupply, as evidenced by the overhang of supplies over the past few years," said a Japanese trading source.

The Tokyo Commodity Exchange rubber contract for April delivery  finished 0.5 yen higher at 159.8 yen  ($1.40) per kg. The contract hit a 26-month low of 156.6 yen on Tuesday.

TOCOM's technically specified rubber (TSR) 20 futures contract for May delivery rose 0.9 yen to close at 145 yen per kg.

The most-active rubber contract on the Shanghai futures exchange for January delivery rose 130 yuan to finish at 11,285 yuan ($1,623) per tonne.

The front-month rubber contract on Singapore's SICOM exchange for December delivery last traded unchanged at 123.5 U.S. cents per kg.