Tokyo rubber at 1-week low

Print this page Posted on : 05-31-2008 by recycleinme.com

Tokyo rubber futures on Friday tumbled nearly 5 per cent to a one-week low on heavy fund selling, retreating sharply from a 28-year high marked this week. Massive fund buying was instrumental in this week's rally, and market participants have been keeping an eye on their movements to gauge market direction. Such fund buying and supply tightness, due to low production stemming from rain, combined to lift the benchmark contract to a 28-year high of ¥345.9 on Tuesday.

Heavy fund inflows into the market had boosted open interest, or the number of contracts outstanding, to 53,982 contracts as of Wednesday-the highest since Feb. 27, and up about 23 per cent since the start of the month. Contracts outstanding fell to 51,773 as of Thursday. The key Tokyo Commodity Exchange rubber contract for November delivery fell to an intraday low of ¥316.6 per kg on Friday, down ¥15.9, or 4.8 per cent. It closed at ¥317.9, down ¥14.6. Physical rubber prices inched down on TOCOM's decline, but prices were underpinned by supply tightness.

Source : Business Line