Tokyo rubber futures dropped around 3 percent and sank to their weakest level in more than four years Monday on lingering concerns over high inventory, although trading volumes were thin due to a holiday in main consumer China. The Tokyo Commodity Exchange rubber contract for November delivery hit a low of 191.50 yen a kg, its lowest since September 2009, before settling 5.9 yen lower at 192.7 yen.
"The market is worried about the high stocks in China, Thailand and Vietnam. China is closed today, so many participants are liquidating their positions," said an analyst in Tokyo. "This week, 180 yen will be the support level. Resistance is at 200 yen. We are very bearish."
Shanghai rubber futures, which often influence TOCOM rubber, were closed on Monday for a national holiday. Trading resumes on Tuesday. The front-month rubber contract on Singapore's SICOM exchange for July delivery fell 1.20 US cents a kg to 164.70 cents - not far from a five-year low struck in April.
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