Tokyo rubber futures down

Tokyo rubber futures ended 1.4 percent lower on Monday, weighed down by worries that Europe's debt crisis could trim demand plus a drop in oil prices, dealers said. The benchmark rubber contract on the Tokyo Commodity Exchange for May delivery fell 3.9 yen, or 1.4 percent, to settle at 266.8 yen ($3.43) per kg.
"TOCOM prices fell in line with oil prices and other commodities as well as stocks, due to fears about a fall in demand caused by the European debt problems," said a Bangkok-based trader. Dealers said TOCOM rubber prices were expected to be trapped in a narrow range on Tuesday, with 260 yen being seen as a strong support level, while 270 yen was seen as a major resistance point. Thailand, the world's biggest rubber producer and exporter, expected 2012 production to rise by 5 percent, while exports were seen at 2.8 million tonnes, up slightly from the 2.7 million tonnes expected in 2011.