BANGKOK (Aug 13): Tokyo rubber futures dropped to their lowest in a month on Wednesday as falling oil prices and weak Chinese economic data spurred selling, dealers said.
The Tokyo Commodity Exchange rubber contract for January delivery fell 3.0 yen to finish at 198.1 yen per kg.
It fell to an intra-day low of 196.6 yen per kg during the session, its lowest since July 15.
“Sentiment was not so good as oil prices kept falling while data showed that the Chinese economy was not bright. That encouraged investors to liquidate contracts to stop losses,” said a Bangkok-based dealer.
China’s property market showed further signs of weakening in July, with real-estate investment slowing and sales falling sharply despite efforts by many local governments to shore up the troubled sector.
Brent crude slipped below $103 a barrel on Wednesday to trade at its lowest level in more than a year as ample supplies counter disruption risks posed by tensions in Iraq and Libya.
Dealers said TOCOM prices could fall further on Thursday after prices finished below the psychological level of 200 yen, which could encourage players to liquidate contracts further to stop losses.
The most-active rubber contract on the Shanghai futures exchange for January delivery fell 115 yuan to finish at 15,140 yuan per tonne.
The front-month rubber contract on Singapore’s SICOM exchange for September delivery was last traded at 165.5 U.S. cents per kg, down 1.8 cents.
– Reuters
