Tokyo rubber futures extended losses on Wednesday and dropped to their lowest level in more than two months on weaker oil prices, but bargain hunting offered some support. The benchmark rubber contract on the Tokyo Commodity Exchange for August delivery fell 4.1 yen to settle at 412.4 yen ($4.99) per kg.
It plunged as much as 3.7 percent to an intraday low of 401.0 yen, the lowest since December 20, 2010. The contract had slumped nearly 9 percent to 416.5 yen per kg on Tuesday. It hit a record high of 535.7 yen hit in mid-February. "Prices finally rebounded after finding a major support level at 400 yen per kg," said a Singapore-based trader. The most active Shanghai rubber contract for May delivery rose 165 yuan to settle at 36,370 yuan per tonne.
TOCOM prices may rally on Thursday after the support at 400 yen held, dealers said. The declines in Tokyo futures, which also dragged down physical prices, raised concerns of a repeat of defaults and cancellations which shocked the physical market a few years ago.
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