Tokyo rubber slips

07 Dec, 2012

Tokyo rubber futures ended lower on Thursday, slipping from a seven-week high hit the previous day, as weak economic data from the United States and Europe raised concerns about demand. The benchmark rubber contract on the Tokyo Commodity Exchange for May delivery dropped 1.4 yen to settle at 263.7 yen ($3.20) per kg.
The most-active rubber contract on the Shanghai futures exchange for May delivery fell 255 yuan to finish at 24,355 yuan ($3,900) per tonne. The front month January contract on Singapore's SICOM exchange was last traded at $2.85 per kg. "Data from the US and Europe was not so good. Investors were not sure whether demand would be good in the near future so they just sold contracts and stayed on the sidelines," said a Bangkok-based trader. Dealers said they expected TOCOM prices to move in a narrow range of 260 to 270 yen, while fears about falling demand in the United States and Europe were still weighing on the market.

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