Asia rubber slips 2% on demand worries

Print this page Posted on : 09-25-2008 by recycleinme.com

Key Tokyo rubber futures closed down about 2 percent but a touch above the day's low on Wednesday, as economic uncertainty fanned by the U.S. financial crisis rekindled fears about demand for the industrial commodity. The key Tokyo Commodity Exchange rubber contract for February 2009 delivery fell to an intraday low of ¥288.5 a kg, down ¥8.1 or 2.7 per cent from Monday. It closed at ¥290.1. "Funds are reluctant to invest in risk assets, so rubber is under pressure. General sentiment for rubber is still very bearish,'' said Mr Jun Nishimuta, analyst at Kanetsu Asset Management in Tokyo. The benchmark contract for rubber, which is mostly used to produce tyres, has been trading below ¥300 for about a week. Key TOCOM rubber faced some technical resistance at its 10-day moving average of about ¥295.5, though the market was keen to see whether the key contract could fill in a chart gap to ¥300.0 created when it dropped sharply on September 16. The spot September contract expired at ¥380.1 a kg with 6 lots of deliveries.

Source : Business Line