Tokyo rubber futures ended 1.5 percent lower on Wednesday, pulled down by persistent concerns about slowing global growth and weaker oil prices, dealers said. The benchmark rubber contract on the Tokyo Commodity Exchange for March delivery dropped 4.2 yen, or 1.5 percent, to settle at 269.4 yen ($3.45) per kg. The most-active January rubber contract in Shanghai fell 30 yuan to 25,680 yuan ($4,100) per tonne.
The front-month November contract on Singapore's SICOM exchange was last traded at $3.04 per kg, down 1.9 cents. "Players liquidated contracts to avoid risks as they were not confident about global growth and demand," said a Bangkok-based dealer. TOCOM prices could fall further on Thursday as technical sentiment deteriorated after prices finished below a major support level of 270 yen, dealers said.
The International Monetary Fund (IMF) cut its global growth forecast on Tuesday for the second time since April and warned US and European policymakers that failure to fix their economic ills would prolong the slump. Dealers said easing oil prices also weighed on TOCOM prices. Brent crude slipped near $114 on Wednesday after a jump of 2 percent the previous day, with a cloudy economic outlook offsetting fears about disruptions to Middle East oil supply.
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