Tokyo Futures Slump On Demand Concerns

Tokyo rubber futures tumbled on Monday (Feb 28) on concerns over demand from China, prompting investors to close positions, but firmer oil prices helped trim losses.
FUNDAMENTALS
The benchmark rubber contract on the Tokyo Commodity Exchange for August delivery fell as much as 14 yen or 2.9 percent in early trade from Friday's (Feb 25) settlement at 475 yen. As of 0025 GMT, it was at 463.8 yen, down 11.2 yen or 2.4 percent.
The most active Shanghai rubber contract for May delivery fell 70 yuan to close at 38,285 yuan ($5,819) per tonne on Friday (Feb 25).
Oil extended gains on Monday (Feb 28), with U.S. crude futures rising more than $2 to as high as $99.96 a barrel in electronic trade as worries over the worsening situation in Libya stoked fears of a disruption of oil flows in the region. London crude prices also gained by more than $1 to near $114.
The dollar found a steadier footing early in Asia on Monday (Feb 28) and crawled off a record low versus the Swiss franc as risk appetite made a tentative comeback, but the mood remained cautious given ongoing tensions in Libya and fears of contagion.
(Reuters, February 28, 2011)