Tokyo rubber falls on profit- booking

Print this page Posted on : 03-29-2008 by recycleinme.com

Tokyo rubber futures fell 1.7 per cent on Friday as a sharp drop in crude oil prices encouraged active profit- taking after rubber’s strong gains over the last week. Although the market fundamentals remain bullish due to concerns about tight supplies as production in Thailand fall in the dry season, weak technical sentiment prompted investment funds to unload their positions ahead of the weekend.

The benchmark Tokyo Commodity Exchange rubber contract for September delivery finished at 281.0 yen per kg, down 4.7 yen or 1.7 per cent. Other TOCOM contracts closed down 3.3 yen to 4.2 yen. “ Prices are falling as funds have stopped buying. The market is being driven by technical factors with more interest now in testing prices downwards,’’ said Mr Shuji Sugata, a manager at Mitsubishi Corp Futures and Securities Ltd.

On Thursday, the September contract rose as high as 286.8 yen, the highest for any benchmark since March 19. The key contract has jumped nearly 8 per cent from a three- month low of 266.1 yen hit a week ago.

Source : Business Line