BANGKOK (June 4): Benchmark Tokyo rubber futures slipped on Wednesday on stop-loss sales by small investors after prices failed to break above a major resistance of 200 yen, but a weaker Japanese yen lent support, dealers said.
The Tokyo Commodity Exchange rubber contract for November delivery eased 0.1 yen to settle at 193.4 yen ($1.89)per kg.
“TOCOM rubber was supported by a weaker yen, but the market lacked of follow-through buying to rise above 200 yen and that spurred stop-loss selling in the afternoon session,” said a Bangkok-based dealer.
The Japanese unit dropped 0.2 percent to 102.74 yen per dollar on Wednesday, rebounding from the low of 102.80 in early session.
Dealers said TOCOM rubber prices were expected to be trapped in a narrow range with 190 yen seen as a strong support level while 200 yen could be a major resistance.
The most-active rubber contract on the Shanghai futures exchange for September delivery fell 50 yuan to finish at 14,105 yuan ($2,300)per tonne.
The front-month rubber contract on Singapore’s SICOM exchange for July delivery was last traded at 165.0 U.S. cents per kg, down 1.6 cents.
Thaiand’s military government is to shelve a plan to sell 200,000 tonnes of rubber from stocks and will focus on measures to increase domestic consumption to shore up prices, a senior Agriculture Ministry official said on Wednesday.
($1 = 102.4300 Japanese yen)
($1 = 6.2541 Chinese yuan yenminbi)
Rubber Benchmark TOCOM slips, but weaker yen supports
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