BANGKOK, Jan 27 (Reuters) – Tokyo rubber futures tumbled to a
one-month low on Wednesday on a firmer yen, which triggered
stop-loss selling amid poor technical sentiment, worsened by
falls in other commodities, dealers said.
* The benchmark rubber contract on the Tokyo Commodity
Exchange <0#JRU:> for July delivery fell 8.0 yen, or 2.8 percent,
to settle at 278.2 yen ($3.12) per kg. It had fallen as low as
276.5 yen per kg, the lowest since Dec. 30.
* “The yen at below 90 per dollar was too strong for rubber
futures and the sentiment was very poor in other commodities,
especially oil,” one dealer said.
* The yen firmed broadly on Wednesday as investors remained
jittery about risk-taking, with the focus still on China’s
efforts to curb lending and the outcome of a Federal Reserve
policy meeting later. [ID:nT0E60Q06T] At 0720 GMT, the yen stood
at 89.24 per dollar.
* A stronger Japanese yen makes dollar-based rubber futures
cheaper and usually encourages players to unwind rubber futures
contracts to stop losses.
* Oil was little changed on Wednesday but still stayed below
$75 a barrel as a firm dollar offset a surprise drop in crude
stockpiles in top consumer the United States. [ID:nSGE60Q061]
* Dealers said they expected TOCOM prices to rebound on
Thursday after prices could stay above a key psychological
support level of 275 yen per kg, expecting strong demand and
limited supply on the physical front should lend support.
($1=89.22 Yen)

Source: Reuters

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