TOKYO (July 6): Benchmark Tokyo rubber futures tumbled to 10-week lows on Monday, weighed down by more than 4 percent drop in Shanghai futures and worries about global impact from Greek financial crisis, dealers said.
The Tokyo Commodity Exchange rubber contract for December delivery finished 3.9 yen, or 1.8 percent, lower at 215.3 yen ($1.76) per kg. It earlier slid to a low of 214.3 yen, the lowest since April 28.
“Greek jitters prompted a flurry of sells, while Shanghai slump added to the pressure,” said Jiong Gu, an analyst at Yutaka Shoji.
Greece’s outspoken finance minister resigned on Monday, removing a major obstacle to any deal to keep Athens in the euro zone after Greeks voted resoundingly to back the government in rejecting the austerity terms of a bailout.
The most-active rubber contract on the Shanghai futures exchange for September delivery plunged 600 yuan, or 4.5 percent, to finish at 12,735 yuan ($2,051.09) per tonne. It dipped earlier to as low as 12,610 yuan, the lowest since April 16.
“Although China’s stock prices recovered to end higher, Shanghai rubber futures are likely to stay under pressure given the sharp loss today,” Gu said.
China’s key stock indexes showed signs of stabilising on Monday, rising close to 3 percent, in response to unprecedented rescue measures announced over the weekend.
“The TOCOM prices are also expected to head lower toward 210 yen level as the benchmark fell below a near-term technical resistance of 215.3 yen,” Gu added.
The front-month rubber contract on Singapore’s SICOM exchange for August delivery last traded at 148.9 U.S. cents per kg, down 3.4 cent.
($1 = 122.6100 yen)
($1 = 6.2089 Chinese yuan)
