Key TOCOM rubber futures dipped to a two-month low on Wednesday as investors reduced their exposure to risk due to uncertainty over global growth prospects, with some investors anticipating a further drop in prices.
"Market sentiment is not good," said Kazuhiko Saito, chief commodities analyst at trading house Fujitomo Co. "We'll see more sagging if China's economic data shows further signs of a slowdown." China will announce a raft of economic data on Friday, including industrial output, GDP and retail sales.
The key Tokyo Commodity Exchange rubber contract for September delivery settled down 12 yen, or 3.7 percent, at 310.2 yen per kg, after hitting an intra-day low of 310.0 yen. That was the lowest level since February 3. The most active Shanghai rubber contract for September delivery dropped 640 yuan to close at 26,680 yuan per tonne. On the SICOM in Singapore, the most active June contract was last traded at 365 US cents per kg, down 6 cents. The front-month May rubber contract was not traded.
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