Tokyo rubber futures extended their fall on Thursday following losses in the last two sessions as a deteriorating technical trend encouraged day traders to test psychological support of 300 yen per kg. But growing wariness over supplies due to continued rain in Thailand, the world's biggest rubber producer, and a downtrend in crude rubber inventories in Japan curbed further selling.
As of 0452 GMT, the key Tokyo Commodity Exchange rubber contract for February 2009 delivery stood at 301.5 yen per kg, down 0.3 yen from Wednesday. It briefly hit a session low of 299.2 yen - the lowest since August 21. The market was watching whether the key contract would break below a low of 295.7 yen hit on August 19.
Investor selling had dampened TOCOM rubber futures since a rising dollar soaked up money from broadly lower commodities markets, including oil.Oil prices bounced back on Thursday, supported by Hurricane Ike and Opec's surprise output cut the previous day. Data compiled by the Rubber Trade Association of Japan showed on Thursday that Japan's crude rubber inventories fell 4.3 percent to 5,920 tonnes in the 10 days to August 29.
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