Tokyo rubber at 6-month low

Print this page Posted on : 09-27-2008 by recycleinme.com

Tokyo rubber futures fell to a six-month low on Friday, extending losses into a third session as tumbling oil prices and worries about weakening demand for the industrial commodity dragged prices lower. Benchmark rubber futures for March 2009 delivery on the Tokyo Commodity Exchange closed the day down 3.8 per cent, at 276.4 yen a kg. The intra-day low was ¥ 274.7, the lowest level for any benchmark contract since March 25. The nearby spot October contract, which is not subject to the daily trading limit, closed down ¥18.7 at ¥299.3 . "People had bought up the market in anticipation of a high price expiry," said a manager at Tokyo-based brokerage firm, referring to Wednesday's expiry of the then-spot September contract at ¥380.1, marking the highest expiry price for a second straight month. "Now it's their stop-loss selling driving the market lower," he said.

Source : Business Line