Tokyo rubber plunges on July 2

Tokyo Commodity Exchange (TOCOM) futures plunged to a nearly 1-1/2-month low on Tuesday as foreign funds stepped up unwinding their long positions, although buying from end-users in late trade helped the market recover some of earlier losses. The benchmark TOCOM rubber contract for December delivery finished lower 4.2 yen, or 2.2%, at 191.0 yen ($1.76) per kg, after hitting the lowest since May 15 of 185.4 yen earlier in the session.on

TOCOM's technically specified rubber (TSR) 20 futures contract for January delivery closed down 2.7% at 152.1 yen per kg. The front-month rubber contract on Singapore's SICOM exchange for August delivery last traded at 146.4 US cents per kg, down 0.6%. The most-active rubber contract on the Shanghai futures exchange for September delivery fell 90 yuan to finish at 11,325 yuan ($1,651) per tonne, after dipping to as low as 11,135 yuan, the lowest since March 29, earlier in the session. "A quick unwinding by overseas funds which have held long positions since June triggered the TOCOM's plunge in the mid-day," said Hideshi Matsunaga, an analyst at Sunward Trading.