TOKYO (Sept 28): Benchmark Tokyo rubber futures on Thursday hit their lowest in near two months, taking a lead from the plunge in Shanghai futures amid a broad sell-off in global commodities.
Singapore rubber futures also plunged more than 7%.
The sell-off mainly involved crude, rubber and other commodities after Brent crude slipped from a more-than-two-year high, said a Japanese commodities trading source, who declined to be identified.
Technicals also indicated a downtrend. TOCOM rubber may retrace into a range of 196.90 yen-200 yen per kg in three months before rising towards a resistance at 229.40 yen, as suggested by its wave pattern, a Fibonacci retracement analysis and a rising channel.
The Tokyo Commodity Exchange rubber contract for March delivery finished down 11.9 yen at 205.8 yen (US$1.82) per kg. Earlier in the session, it touched 204.6 yen, its lowest since Aug 4.
The most-active rubber contract on the Shanghai futures exchange for January delivery dropped 1,025 yuan to finish at a two-month low of 13,605 yuan (US$2,040) per tonne.
The front-month rubber contract on Singapore’s SICOM exchange for October delivery last traded at 140.70 US cents per kg, down 10.9 cents.
(US$1 = 113.0000 yen)
(US$1 = 6.6685 Chinese yuan)
