TOKYO: Japanese rubber futures fell for a fourth straight session on Wednesday, pressured by profit-taking following a recent rally, while sentiment was weighed down by a bond market-induced selloff in global equities that spilled into Asian markets.
The Osaka Exchange (OSE) rubber contract for February delivery was down 4.9 yen, or 1.12 percent, at 432.2 yen (USD2.71) per kg.
The rubber contract on the Shanghai Futures Exchange (SHFE) for January delivery fell 305 yuan, or 1.61 percent, to 18,655 yuan (USD2,774.97) per metric ton.
The most active October butadiene rubber contract on the SHFE lost 140 yuan, or 0.93 percent, to 14,920 yuan per ton.
Japanese shares ended lower as renewed US attacks on Iran pushed oil prices higher, stoking fears of an economic slowdown and lifting bond yields, which pressured growth stocks. The Nikkei sank 2.85 percent.
Following the recent price surge, the market has entered a period of profit-taking and position rebalancing, a Singapore-based trader said. The contract had hit a two-month high on Thursday.
The mid-term trend remains intact, with El Niño a lingering concern, the trader added.
Losses in rubber were limited, however, as oil prices extended gains amid escalating US-Iran conflict.
Oil prices rose in early trade on Wednesday, extending the previous session’s surge, as concerns over supply disruption intensified after the US and Iran exchanged strikes overnight.
Natural rubber often follows oil prices as it competes for market share with synthetic rubber, which is made from crude oil.
Elsewhere, Canada’s border agency launched an anti-dumping and anti-subsidy investigation into exports of Chinese truck and bus tires on August 31, with a preliminary decision due within 90 days and potential provisional duties to follow, according to the Canada Border Services Agency’s notice of initiation of investigations.
The front-month rubber contract on Singapore Exchange’s SICOM platform for November delivery last traded at 232.2 US cents per kg, down 0.8 percent as of 0707 GMT.