Tokyo futures near week low on Europe woes, MF Global collapse

BANGKOK: Tokyo rubber futures dropped to a near one-week low on Tuesday, weighed down by uncertainty over Europe's efforts to resolve its debt crisis and the collapse of broker-dealer MF Global , dealers said.

The benchmark rubber contract on the Tokyo Commodity Exchange for April delivery fell 10.1 yen, or 3.3 percent, to settle at 297.8 yen ($3.819) per kg.

It fell as low as 296.6 yen during the session, its weakest level since October 27.

The most-active rubber contract on the Shanghai futures exchange for January delivery fell 695 yuan, or 2.56 percent, to finish at 26,410 yuan ($4,155) per tonne.

"Sentiment on rubber itself was not so good due to the unfinished Euro debt crisis and the news about MF Global added more pressure on prices," one dealer said.

The US-based futures brokerage filed for bankruptcy protection following bad bets on euro zone debt. Its meltdown in less than a week made it the biggest US casualty of Europe's debt crisis and the seventh-largest bankruptcy by assets in US history.

Oil prices slipped on Tuesday on a stronger US dollar, continuing uncertainty about the euro zone crisis and MF Global's collapse.

Dealers said they expected TOCOM prices to move in a narrow range this week, with 290 yen level seen as a strong support level.

Copyright Reuters, 2011