Key Tokyo rubber futures plunged 11.6 percent to a year low and Shanghai futures fell by their daily limit on Monday as they took a hit from global sell-offs in risk assets. The key Tokyo Commodity Exchange rubber contract for February delivery dived 39.5 yen to settle at 303 yen per kg, the lowest level since September 2010. Some saw the next support line at 300 yen.
The most active Shanghai rubber contract for January delivery fell by its daily limit and closed at 27,465 yuan per tonne, down 4.5 percent from Friday's close. Volume stood at 1,009,508 lots. "We see the next support line at 300 yen. The market will turn ugly if the benchmark breaks through that mark," said Naoki Asami, chief broker at trading company Kanetsu.
"We won't see a swift recovery of the market unless global financial markets stabilise." Brent crude fell below $102 to a near 7-week low on Monday, as fears of an impending global recession led investors to dump riskier commodities in favour of safe-haven assets.
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