Benchmark Tokyo rubber futures dropped on Monday, tracking weak Shanghai and weighed down by declining crude oil prices. Tokyo Commodity Exchange (TOCOM) futures, which set the tone for rubber prices in Southeast Asia, were also under pressure from weak fundamentals. "The fall was mainly tracking performances of the chemical and industrial commodities futures in general, which were impacted by fluctuating crude oil prices," said Hu Ding, an analyst with China Futures Research.

The Tokyo Commodity Exchange rubber contract for July delivery fell 0.5 yen ($0.0046) from its open price to close at 180.7 yen per kg. TOCOM's technically specified rubber (TSR) 20 futures contract for July delivery fell 0.3 yen to close at 154 yen per kg. The most-active rubber contract on the Shanghai futures exchange for May delivery fell 110 yuan ($16.34) to finish at 11,555 yuan per tonne.

The front-month rubber contract on Singapore's SICOM exchange for February delivery last traded at 132 US cents per kg, down 0.9 cent. Oil prices fell by 1 percent on Monday on increased US rig count and China industrial slowdown. China also launched natural rubber options on Monday, increasing derivative tools available to cope with price volatility and risks.

Copyright Reuters, 2019