This entry was posted on Friday, August 5th, 2011 at 8:24 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.
Tocom rubber futures settle 2.8% lower after falling as much as 3.5% intraday due to fears of a global double-dip recession. Still, Tocom is posting relatively limited losses compared with a steep selloff in Shanghai rubber. The USD/JPY, which fell on risk aversion after BOJ”s intervention Thursday, also weighs. Tocom is likely to continue taking external cues in the next session due to macro-economic uncertainties, but “fundamentals still look firm; raw material prices are still high and arrivals are slow,” a major Thai exporter says. “Things are still looking good for rubber; I think a rebound may be in place mid-next week,” a trader in south Thailand says; he pegs support at Y378/kg. The U.S. jobs report later in the global day will be a key focus for markets overall. Benchmark January rubber settles Y11.1 lower at Y379.4/kg, off an intraday low of Y376.8/kg.
Source: Dow Jones