BANGKOK, June 18 (Reuters) – Tokyo rubber futures ended lower
on Friday, extending previous losses as oil prices continued to
fall, dealers said.
* The benchmark rubber contract on the Tokyo Commodity
Exchange <0#JRU:> fell 0.9 yen to settle at 274.4 yen ($3.02) per
kg.
* The contract dropped more than 3 percent on Thursday,
retreating from a 2-week high the previous day, on falling oil
prices while weaker sentiment sparked stop-loss selling, dealers
said.
* “Technical sentiment is getting worse as prices fall below
275 yen support level. Prices could fall further as players may
sell contracts to stop losses,” one dealer said.
* Oil extended losses on Friday as sluggish economic
indicators raised doubts about the sustainability of a recent
acceleration in demand growth by top oil consumer the United
States. [O/R]
* Falling oil prices make an alternative, petrochemical
synthetic rubber cheaper and usually encourage players to sell
natural rubber contracts to avoid losses.
* TOCOM prices were expected to fall further next week with
270 yen seen as a strong support level, dealers said.
($1=90.92 Yen)

Source: Reuters

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