Tokyo rubber futures fell more than 1 percent on Tuesday as sharp falls in oil prices prompted active selling, pushing the benchmark contract to its lowest level in almost one week. As of 0046 GMT, the key Tokyo Commodity Exchange rubber contract for February delivery was trading at 314.8 yen per kg, down 3.4 yen or 1.1 percent from Monday's close.
It briefly hit an intraday low of 313.0 yen - the lowest since August 27. The key TOCOM rubber contract ended an eight-day winning streak on Monday, when it succumbed to pressure after hitting a one-month high of 324.9 yen.
The key contract found support around the 25-day moving average of 312.9 yen. On Monday, oil plunged more than $4 as concerns that Hurricane Gustav would cause lasting damage to the US oil sector eased after the storm weakened before hitting the Louisiana coast. Traders said TOCOM prices were expected to find some support amid wariness over tightness in physical supplies.
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