Rubber drops

03 Apr, 2014

Tokyo rubber futures dropped more than 3 percent on Wednesday to the lowest in three weeks due to profit-taking, while falling Shanghai rubber futures added pressure on TOCOM, dealers said. The Tokyo Commodity Exchange rubber contract for September delivery was down 7.8 yen to settle at 226.7 yen ($2.19) per kg. It fell as much as 8.4 yen, or 3.6 percent, to an intra-day low of 226.1 yen, the lowest since March 11.
"Investors took profit, while weaker Shanghai futures also encouraged players to liquidate contracts to stop losses," said a Bangkok-based dealer. The most-active rubber contract on the Shanghai futures exchange for September delivery fell 180 yuan to finish at 15,530 yuan ($2,500)per tonne. The front-month rubber contract on Singapore's SICOM exchange for May delivery was last traded at 185.5 US cents per kg, down 3.7 cents.

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