This entry was posted on Monday, April 25th, 2011 at 9:22 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.
[Dow Jones] Tocom rubber futures settle lower on fund selling. “Physical supplies are tight,” says Tokyo-based commodities brokerage analyst. “You can see Tocom rubber is in backwardation and top heavy, however funds are liquidating or adjusting their positions–selling forward contracts and buying nearby contracts.” He adds the market may recover Tuesday, with some investors buying back their positions, but notes Tocom is volatile and the situation is “dangerous”; he tips support at Y380/kg and resistance at Y410/kg for the benchmark month. The market is cautious ahead of long holidays in Japan, with Tocom closed Friday and again next Tuesday-Thursday; despite a prolonged wintering season hitting output in major producers, Tocom rubber fell Y40 in one day alone before the three-day break in Japan this time last year, as investors exited the market. The September rubber contract–the previous benchmark–settles Y13.8 or 3.3% lower at Y405.2/kg, near the intraday low of Y404.9/kg. The new benchmark October contract opened at Y413/kg and settled at Y395.9/kg.
Source: Dow Jones