Tokyo rubber futures slip

December 05, 2012

Tokyo rubber futures slipped lower

Tokyo rubber futures slipped lower on Tuesday, weighed by weaker oil prices and concerns over falling demand amid uncertainty about US economy and its fiscal uncertainty, dealers said. The benchmark rubber contract on the Tokyo Commodity Exchange for May delivery was down 1.6 yen to settle at 262.1 yen ($3.19) per kg.

The most-active rubber contract on the Shanghai futures exchange for May delivery was up 25 yuan to finish at 24,325 yuan ($3,900) per tonne. The front-month January rubber contract on Singapore’s SICOM exchange was last traded at $2.83 cents per kg.

“Poor US economic data spurred selling in stocks and commodity markets to avoid risks as people were concerned about demand,” said a Bangkok-based dealer. However, dealers said TOCOM prices may rebound on Wednesday after prices finished above a major support level of 260 yen per kg.

US manufacturing unexpectedly contracted in November to its lowest in more than three years as companies worried about Washington budget deal that could lead to a recession. Dealers said weaker oil prices were also another negative factor that weighed on rubber.

 

Courtesy: Reuters

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