Tokyo rubber futures fall 2.2%, worth half of 2011 high

Friday, 30 December 2011 00:34 - - {{hitsCtrl.values.hits}}

BANGKOK, Dec 29 (Reuters) - Tokyo rubber futures fell 2.2 percent on Thursday, tracking a drop in stock markets, and looked set to end 2011 about 50 percent cheaper than at the high point of the year reached in February, before worries about global demand took over.

The benchmark rubber contract on the Tokyo Commodity Exchange for June delivery fell 6.1 yen on the day, or 2.2 percent, to settle at 265.5 yen ($3.41) per kg. The benchmark hit a record high of 535.7 yen in February but has since dropped sharply and is now 36.7 percent lower than at the start of the year.

The euro zone debt crisis has weighed on the market for months and was a factor behind the fall in stocks on Thursday, although rubber found some support in steadier oil prices, dealers said. “News from Europe was not so good and that triggered selling in equities and commodities, including rubber,” one dealer said.Dealers said TOCOM was still supported by firmness in oil prices and the prospect of a fall in rubber supply in January, when major producing countries will be in their dry season.

TOCOM rubber might rebound on Friday after prices finished above technical support at 265 yen, but any gains are likely to be capped by profit-taking ahead of the year-end holidays.