Tokyo rubber at 6-month low

Print this page Posted on : 09-30-2008 by recycleinme.com

Tokyo rubber futures fell more than 3 per cent to a six-month low on Monday as bearish sentiment carried over from last week when prices fell on worries about weakening demand. The key Tokyo Commodity Exchange rubber contract for March delivery closed down ¥9.5, or 3.4 per cent, at ¥266.9 per kg. It earlier fell as low as ¥266.6, close to a year-to-date low of ¥266.1 marked in March.

Mr Takashi Ogura, a manager at Kanetsu Asset Management in Tokyo, said the market had reached a crucial stage as it had fallen below the key 275-yen level. The TOCOM market paid little attention to falling rubber stocks. Japan's crude rubber inventories fell to an all-time low of 4,855 tonnes on Sept. 10, down 18 per cent from Aug. 29, data released by the Rubber Trade Association of Japan showed on Monday.

Some brokers blame high physical rubber prices, due to tight supplies, as one reason for the low stock level. Physical rubber prices fell, reflecting the decline in futures prices, although trading is expected to be slow, as Chinese financial markets are closed from Sept 29 to Oct 3 because of national holidays.

Source : Business Line