Asian Rubber Settles Lower; Trade Might Slow For Rest Of Week
30 April 2014, 17:54 SEAST
Asian rubber settled mostly lower Wednesday ahead of the observance of the Labor Day holiday in much of Asia on Thursday.
Benchmark October rubber futures on the Tokyo Commodity Exchange settled 0.8 yen lower at Y205.5 a kilogram after reversing early gains.
“Those who say prices will test the Y210/kg resistance this week are too hopeful. I think it’s unlikely to happen because market sentiment is just so poor,” a trader in Bangkok said. Activity on Tocom will likely be limited for the rest of the week because Friday also is a public holiday in China, he added.
October Tocom rubber closed Y1.9 higher at Y207.4/kg in the night session, which is considered part of the next trading day.
This week, International Rubber Consortium Chief Executive Yium Tavarolit in his market report said rubber was oversold in the last week and supply-demand fundamentals “still lend some support to (the) current” market.