Bangkok (march 09, 2011) : tokyo rubber futures tumbled 8.7 percent to the lowest in more than two months on tuesday, tracking falls in oil prices, with heavy stop-loss selling adding to the pressure, dealers said. the benchmark rubbercontract on the tokyo commodity exchange for august delivery fell 39.7 yen to settle at 416.5 yen ($5.06) per kg, the lowest since december 30. it was the biggest daily decline since september 2009.
the most active contract in the shanghai rubber futures market for may delivery fell 2,470 yen to settle at 36,205 yuan per tonne. dealers said technical sentiment was poor after prices fell below psychological support at 450 yen per kg. "there was huge stop-loss selling after prices fell further below 430 yen," one dealer said.
physical prices also dropped on tuesday as traders who had hoarded rubber, expecting to sell it when prices rose higher, started releasing some from their overflowing stocks. tocom prices were expected to fall further on wednesday as players liquidated contracts to avoid risk, dealers said. however, prices were unlikely to fall below a key support level at 400 yen, they said.
Wednesday, March 9, 2011
Tokyo rubber futures slump
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