Tokyo rubber futures hit 1-month low

Thursday, 21 February 2013 00:29 - - {{hitsCtrl.values.hits}}

BANGKOK (Reuters): Tokyo rubber futures dropped around 3% for the second-straight day to hit a one-month low on Wednesday, as Thailand said it would end its rubber intervention scheme.

Follow-through selling by investment funds after prices fell through major support at 310 Yen also pressured prices, dealers said.

The benchmark rubber contract on the Tokyo Commodity Exchange, for July delivery, lost 9.3 Yen to settle at 305.3 Yen (US$ 3.26) per kg. It earlier declined as much as 3% to 305 Yen, lowest since 17 January.

“Sentiment was bearish as the (impact from the) end of the Thai intervention still lingered on the market and funds liquidated contracts heavily to stop losses after prices broke below major support at 310 Yen,” said a Tokyo-based dealer.

Thailand’s Government said on Tuesday that it would not renew a rubber-buying scheme due to expire at the end of March as prices had returned to acceptable levels.

But dealers said TOCOM had room to rebound on Thursday as prices had found strong support at 305 Yen.

The most-active rubber contract on the Shanghai Futures Exchange, for September delivery, dropped 285 Yuan to finish at 25,805 Yuan (US$ 4,100) per ton.

The front-month March rubber contract on Singapore’s SICOM exchange was last traded at 298 US cents per kg, down 4.7 cents.