TOKYO: Japanese rubber futures fell to a 2-1/2-month low on Wednesday, extending losses into a third straight session, on concerns over rising Covid-19 infections globally and higher supply after the dry, wintering season.
Osaka Exchange’s rubber contract for December delivery finished down 5.7 yen, or 2.5%, at 226.3 yen ($2.1) per kg, after touching its lowest since April 14 of 225.8 yen earlier in the session.
The benchmark lost 7.9% in June after gaining in the previous two months.
The rubber contract on the Shanghai futures exchange for September delivery fell 190 yuan to finish at 12,800 yuan ($1,982) per tonne.
Indonesia, Malaysia, Thailand and Australia are all battling pandemic outbreaks and tightening restrictions, while Spain and Portugal announced restrictions for unvaccinated British tourists.
“The market stayed under pressure due to growing fears over a resurgence in cases of the highly contagious Covid-19 variant, as well as worries over slowing demand in top buyer China,” a Tokyo-based dealer said.
“Investors were worried that the prices would fall even further due to lack of buyers, especially from China, at a time when supply is growing after the wintering season,” he said.
Rubber output is set to grow after the dry wintering season, when trees shed leaves. Wintering in Southeast Asia lasts from around February to May.
The front-month rubber contract on Singapore’s SICOM exchange for July delivery last traded at 161.0 US cents per kg, down 1.5%.