Tuesday, 31 March 2015 17:28
TOKYO: Benchmark Tokyo rubber futures fell for a third session to a fresh three-week low on Tuesday as plunging oil prices and extended losses in Shanghai futures led to selling from stop-loss orders, dealers said.
The Tokyo Commodity Exchange rubber contract for September delivery finished 2.1 yen, or 1 percent, lower at 205.9 yen ($ 2) per kg. It earlier fell to as low as 205.6 yen, the lowest since March 11.
“There was no fundamental news, but the market stayed under pressure with selling from stop-loss orders, weighed down by slumping oil prices and weaker Shanghai market,” a Tokyo-based dealer said.
Oil futures extended losses, as Iran and six world powers ramped up the pace of negotiations to reach a preliminary deal that could ease sanctions and allow more Iranian crude onto world markets.
The most-active rubber contract on the Shanghai futures exchange for September delivery fell 180 yuan to finish at 12,540 yuan ($ 2,023) per tonne.
The dollar was little changed at 120.20 yen after surging from an overnight low of 119.105.
“Looking at the technical chart, the 206 yen is a crucial point. If the benchmark keeps sinking on Wednesday, investor sentiment will become more bearish,” the dealer said.
The front-month rubber contract on Singapore’s SICOM exchange for April delivery last traded at 142.5 U.S. cents per kg, down 0.3 cent.
Copyright Reuters, 2015
