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TOCOM rubber hits 5-year low on Chinese data, weak oil prices

BANGKOK, Sept 24 (Reuters) – Tokyo rubber futures hit a fresh 5-year low on Wednesday on persistent fears of weak demand from China and falling oil prices, dealers said.

The Tokyo Commodity Exchange rubber contract for February delivery slipped 0.1 yen to settle at 183.4 yen per kg.

It fell to an intra-day low of 180.7 yen, the lowest since July 2009.

“China economic data was not as good as expected and weak oil prices also weighed on the market,” said a Bangkok-based dealer.

China’s manufacturing sector unexpectedly picked up some momentum in September even as factory employment slumped to a 5-1/2-year low, a potential source of worry for Communist leaders who prize social stability above all else.

Brent crude fell for a third day on Wednesday, slipping further below $97 a barrel as inflated supplies and weak economic data from Europe outweighed rising geopolitical tensions in the Middle East.

Dealers said TOCOM briefly found support from the Thai government’s effort to stop prices from falling further by postponing the sale of its remaining 100,000 tonnes of rubber stocks.

The most-active rubber contract on the Shanghai futures exchange for January delivery ended flat at 12,275 yuan per tonne.

The front-month rubber contract on Singapore’s SICOM exchange for October delivery was last traded at 144.5 U.S. cents per kg, down 0.3 cent. (Reporting by Apornrath Phoonphongphiphat; Editing by Sunil Nair)

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