Tokyo rubber futures tumbled 3.9 percent on Wednesday, tracking falling oil prices, while investors liquidated contracts ahead of an EU summit, waiting for clear direction about the debt woes of Greece, dealers said. The benchmark rubber contract on the Tokyo Commodity Exchange for October delivery fell 10.8 yen, or 3.9 percent, to settle at 269.6 yen ($3.37) per kg.
The most-active rubber contract on the Shanghai futures exchange for September delivery fell 480 yuan to finish at 24,130 yuan ($3,800) per tonne. The front-month June contract on Singapore's SICOM exchange was last traded at 327.0 US cents per kg, down 7.5 cents.
"Players sold contracts to avoid risks. They may buy back later if the EU summit produces a clear solution for Greece. However, weaker oil prices still weighed on the market," said a Bangkok-based trader. European Union leaders will meet on Wednesday and are expected to consider a plan for regional bonds to be jointly underwritten by all euro zone member states, aimed at containing the region's debt crisis.
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