Tocom Rubber Settles Lower; May Improve

5 August 2014, 13:43 SEAST

Tocom rubber futures settle 0.8% lower in slow, rangebound trade due to persistent weak sentiment.

Prices may, however, improve this week due to tight rubber supply in the second half of the year should an El Nino weather event occur, and as farmers have been forced by low prices this year to abandon rubber holdings to look for other jobs, says International Rubber Consortium Chief Executive Yium Tavarolit in a note.

Most traders eye support at Y200/kg. Benchmark January rubber settles Y1.7 lower at Y204.6/kg, after moving in the Y204.2-207.4/kg range.