Market and product
Tsunami panic to hit rubber markets next week
However, traders said Tocom prices will have its impact next week. Malaysian rubber prices are likely to continue to ease next week on lack of strong buying, they added.
Malaysia physical rubber prices traded lower during the week in line with weaker rubber prices on the Tokyo Commodity Exchange.
On Friday, the benchmark rubber contract on the Tokyo commodity exchange dropped 15.4 yen, or 3.7 percent, to settle at 401.4 yen ($4.84) per kg.
In Shanghai, the most active shanghai rubber contract for May delivery fell 995 yuan to finish at 35,195 yuan ($5,353) per ton.
Dealers said tocom rubber was still supported by limited supply on the fundamental side, which triggered speculative buying on the futures market below 400 yen, pushing prices above that support level.
Tocom rubber started early this week because of worries grew about the global economy; heavy stop-loss selling was seen.
Meanwhile, Indian rubber markets also witnessed hectic movements on Japan impact as prices drop sharply in country’s National Multi-Commodity Exchange (NMCE) on Friday. At NMCE , the near month March contract fell 4.43% to 20693 on Friday and presently trading further down at 20100, a decline of 2.87%.
Like many other markets, Indian rubber market also takes price guidance from rubber trades from Tocom.
