Tokyo rubber falls 2.6%

Print this page Posted on : 02-29-2008 by recycleinme.com

Tokyo rubber futures dropped more than 2 per cent on Thursday on fund selling fuelled by falling oil prices.

The benchmark rubber contract on the Tokyo Commodity Exchange for August delivery fell 7.8 yen, or 2.6 per cent, to 304.4 yen ($2.86) per kg. It fell as low as 301.9 yen, when speculative buying set in to keep prices above the psychological 300 yen level.

Spot slips

In the physical market, rubber prices slipped, tracking falls on TOCOM. Physical trade was likely to be busier as lower prices induced tyremakers to buy, traders said.

"It's like a tradition that buyers come back when they see a TOCOM correction,'' one said. Major tyremakers bought Thai RSS3 at $2.81 per kg and Indonesian SIR20 at $1.22 per lb for April shipment, traders said. Indonesia's SIR20 was sold at variety of prices late on Wednesday. SIR20 was traded at $1.23 per lb for March shipment and $1.23-$1.24 for April, traders said. It was also sold at $1.2275 for October and November shipments, they said.

Source : Business Line