Tokyo rubber slides to near 2-week low
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Tokyo rubber futures tumbled almost 4 per cent to a near-two-week low on Wednesday, losing ground in step with steep falls in crude oil prices and a stronger yen.
Weakness in other commodities such as gold also added downward pressure.
A Tokyo trader said Wednesday's decline stemmed from losses in other financial markets, and not from factors distinctive to rubber itself. ''Rubber cannot, in itself, go against the tide moving global financial markets,'' he said.
The benchmark rubber contract for July delivery on the Tokyo Commodity Exchange fell 11.2 yen per kg, or about 3.8 per cent, to the day's trough of 283.9 yen, which was the lowest level since Jan. 25. It inched up a touch to finish the day at 285.3 yen.
Elsewhere, TOCOM gold futures fell, with the lead December contract closing at 3,057 yen per gm, down 50 yen. Physical rubber supplies were tight due to seasonal factors, helping to prop up prices. "Raw material supplies are very tight, especially from Indonesia,'' an Asian trader said. He added that he had heard that rubber inventories in China, the top buyer, were low, and that the country needed to buy prompt cargoes. The Tokyo-based trader said he had not heard the report, but added that Chinese data was often sketchy.
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Source : Business Line |
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