Key Tokyo rubber futures fell over 3 percent on Wednesday, dragged lower by selling in Shanghai rubber futures, concerns over demand from China and rising supplies from top producer Thailand. The benchmark rubber contract on the Tokyo Commodity Exchange for November delivery fell 12.9 yen, or 3.4 percent, to settle at 364.7 yen per kg. The contract dropped as much as 3.7 percent to 363.8 yen.
The most active Shanghai rubber contract for September delivery fell 920 yuan, or 2.8 percent, to close at 32,390 yuan ($5,009.761) per tonne on Wednesday. Volume stood at 996,880 lots. For now, the TOCOM benchmark will likely see resistance at 400 yen per kg, while a low in May of around 353 yen and a March trough around 335 yen will likely serve as support, Kikukawa said. The rubber market may also react to the oil market if oil prices move on the Federal Reserve's comments on the slowing US economy, he said.
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