BANGKOK, June 2 (Reuters) – Tokyo rubber futures fell more
than 4 percent to a one-week low on Wednesday due to falling oil
prices, and the outlook for the U.S. auto industry is adding to
the downward pressure on prices, dealers said.
* The benchmark rubber contract on the Tokyo Commodity
Exchange <0#JRU:> for November delivery fell 13 yen, or 4.6
percent, to settle at 269.2 yen ($2.96). It fell as low as 266.5
yen, the lowest since May 24.
* Oil fell below $72 on Wednesday, its third straight session
of losses, as negative sentiment pervaded financial markets and
investors favoured the safety of the dollar over riskier
commodities. [O/R]
* Falling oil prices encourage the use of an alternative
petrochemical synthetic rubber and usually trigger stop-loss
selling on TOCOM rubber.
* U.S. May auto sales are likely to show a lacklustre
recovery as consumers remain cautious about the economy and the
impact of hefty discounts starts to fade. The data is due on
Wednesday. [ID:nN01106073]
* TOCOM rubber was expected to fall further on Thursday as
technical sentiment turned weak after prices finished below the
key psychological level of 270 yen, dealers said.
($1=90.99 Yen)

Source: Reuters

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