BANGKOK, Sept 9 (Reuters) – Tokyo rubber futures tumbled 3 percent to the lowest in 3 months on Tuesday as weaker oil prices triggered stop-loss selling, dealers said.
The Tokyo Commodity Exchange rubber contract for February delivery dropped 5.6 yen to settle at 191 yen($1.79) per kg.
It fell as much as 5.8 yen, or 3 percent, to an intra-day low of 190.8 yen per kg, the lowest since June 5.
“Falling oil prices encouraged investors to sell contracts to stop losses. Funds and speculators liquidated contracts heavily after prices broke below a major support level of 195 yen,” said a Tokyo-based dealer.
Brent crude eased for a fourth straight session on Tuesday but held above $100 a barrel after dropping below that level on the previous day for the first time in nearly 15 months, with prices supported by hopes of production cuts by OPEC.
Dealers said TOCOM prices could move in a narrow range with 190.3 yen being seen as the next support level.
The most-active rubber contract on the Shanghai futures exchange for January delivery fell by 710 yuan, or as much as 5 percent, in line with TOCOM prices before closing 4.6 percent lower at 13,530 yuan ($2,205) per tonne.
The front-month rubber contract on Singapore’s SICOM exchange for October delivery was last traded at 151.8 U.S. cents per kg, down 7.1 cents.
(1 US dollar = 106.2500 Japanese yen)
(1 US dollar = 6.1352 Chinese yuan) (Reporting by Apornrath Phoonphongphiphat; Editing by Biju Dwarakanath)
– Reuters
