Key Tokyo rubber futures settled down 3.1 percent after plunging as much as 6.2 percent on Wednesday, and the market may struggle to stay above key support at 300 yen before a long holiday in China and due to worries that upcoming US data may disappoint.
The key Tokyo Commodity Exchange rubber contract for March delivery fell 19.7 yen to settle at 309.7 yen per kg, down 19.7 yen, after plunging as low as 299.7 yen, the lowest since September 2010.
The most active Shanghai rubber contract for January delivery fell 2.6 percent to close at 27,540 yuan per tonne. Volume stood at 1,349,048 lots. Less-than-expected speculative buying in China, ahead of a week-long national holiday starting in early October, disappointed investors and prompted them to sell, Kazuhiko Saito, chief commodities analyst at trading company Fujitomi Co. The International Rubber Consortium (IRCo) has asked Thailand, Indonesia and Malaysia to curb exports if rubber prices fall further in the wake of a global economic slowdown.
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