Tokyo rubber futures fell 3.7 percent on Friday to their lowest in nearly three months as stock markets around the world tumbled on fears about unrest in Saudi Arabia, but support held at 400 yen per kg, dealers said. TOCOM prices were not affected by the worst quake to hit Japan in 140 years, as the market had closed earlier.
The benchmark rubber contract on the Tokyo Commodity Exchange dropped 15.4 yen, or 3.7 percent, to settle at 401.4 yen ($4.84) per kg.
It fell as low as 392.3 yen, the lowest since Dec. 16, before rebounding slightly to finish above the major support level at 400 yen. At its low, it had fallen by more than a quarter from the record high of 535.7 yen hit in mid-February. TOCOM rubber started early this week because of worries grew about the global economy; heavy stop-loss selling was seen.
The most active Shanghai rubber contract for May delivery fell 995 yuan to finish at 35,195 yuan ($5,353) per tonne. Dealers said TOCOM rubber was still supported by limited supply on the fundamental side, which triggered speculative buying on the futures market below 400 yen, pushing prices above that support level.
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