[Dow Jones] Tocom rubber futures settle lower after the August contract lost as much as 5.3% amid cut-loss selling by funds that took prices down to the intraday low. Losses were pared in the last half hour before closing on supply support, with major producers in the low-production season. Trade participants in Thailand say floods in the country”s major producing regions may further limit supplies. But “funds have money,” says a trader at large Thai exporter. “If they want to sell, there”s nothing you can do about it.” Trade participants in Japan are pre-occupied with the country”s nuclear woes; “I think fundamentals are quite weak, as power cuts are disrupting auto production,” says a Tokyo-based commodities brokerage analyst. Tocom August RSS3–the previous benchmark–settled Y15.8 or 3.7% lower at Y413.8/kg, off an intraday low of Y407/kg; the new benchmark September contract settled at Y409.3/kg after opening at Y436/kg.

Source: Dow Jones

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