Tokyo rubber futures sink

Tokyo rubber futures sank to their lowest since late 2009 on Monday after speculators dumped riskier assets such as equities and commodities on concerns the debt crisis in Europe could spark a global economic meltdown. The sell-off in Tokyo, which spilled into rubber futures in Shanghai, were also triggered by disappointing US jobs data that added to concerns over a slowing Chinese economy. China is the world's largest rubber consumer.
The benchmark contract for November delivery on the Tokyo Commodity Exchange fell more than 5 percent to as low 240.3 yen a kg, its weakest since November 2009, before ending at 242.8 yen, down 12.5 yen. "The crisis is not over. You have crude oil prices coming down, and there's a sell-off in commodities. I guess 225 yen will be the support level, while resistance is at 270 yen," a dealer in Kuala Lumpur said. In Shanghai, the most active rubber contract on Shanghai futures, September, ended limit down to 22,305 yuan a tonne on Monday, its weakest since July 2010, chasing declines on TOCOM. The front-month June rubber contract on the SICOM in Singapore was last traded at 291 US cents per kg, down 13.50 cents.