This entry was posted on Thursday, May 6th, 2010 at 7:14 pm and is filed under Rubber News. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.
BANGKOK, May 6 (Reuters) – Tokyo rubber futures fell more
than 7 percent on Thursday due to heavy long-liquidation, with
weaker oil prices adding to the pressure, dealers said.
* The benchmark rubber contract on the Tokyo Commodity
Exchange for October delivery <0#JRU:> fell 13.4 yen to settle at
279.6 yen ($2.98) per kg. It fell as much as 7.5 percent at one
stage to an intra-day low of 271.0 yen per kg.
* TOCOM was closed for a holiday from Monday to Wednesday.
* Last Friday it had plunged on chart-driven technical
selling to an almost three-month low of 265.8 yen per kg, down 40
yen from the previous close and the lowest for any benchmark
since Feb. 9. It went below the 300 yen support level for the
first time in a month.
* “It’s a big day of heavy selling as players didn’t want to
take any risks after they factored in a euro zone debt crisis,” a
Japanese dealer said.
* In addition, U.S. crude prices fell more than $1 to $78.96
a barrel on Thursday as global stock markets tumbled on fears
Greece’s economic crisis could spread to other European
countries. [O/R]
* Dealers said TOCOM rubber was likely to be in a downward
trend after marking a 21-month high in mid-April.
* However, TOCOM rubber was not expected to fall sharply
after prices finished above 270 yen and was likely to rebound
slightly on Friday if oil prices stopped falling, dealers said.
* Dealers and analysts polled by Reuters said on Thursday
they expected TOCOM rubber to end May at 295.0 yen per kg.
Source: Reuters