Tokyo rubber futures tumbled more than 3 percent to a 1-1/2 month low on Monday, as investors trimmed long positions to cut their exposure to riskier assets ahead of the US presidential election, dealers said. The benchmark rubber contract for April delivery fell 8.2 yen to settle at 247.2 yen ($3.07) per kg. At one point it fell as much as 9 yen, or 3.5 percent, to an intra-day low of 246.4 yen, the lowest since September 14.
The most-active rubber contract on the Shanghai rubber futures exchange for May delivery was down 705 yuan to finish at 23,755 yuan ($3,800) per tonne. The front-month December rubber contract on Singapore's SICOM exchange was last traded at $2.74 cents per kg, down 8.5 cents. "Players just don't want to carry risks during the time of uncertainties. So, they sold rubber contracts and parked money in other safe-haven assets," said a Bangkok-based dealer. Dealers said TOCOM rubber prices were likely to be trapped in a narrow range of 240-260 yen amid light trade this week as players remain on the sidelines waiting for clearer direction after the US presidential election.