Tokyo rubber futures dropped 2 percent on Friday on stop-loss selling after prices failed to break above a major resistance of 265 yen, while a weak demand outlook for oil weighed, dealers said. The benchmark rubber contract on the Tokyo Commodity Exchange for September delivery was down 5.2 yen, or 2 percent, to settle at 253.5 yen ($2.63) per kg.
The front-month May contract on Singapore’s SICOM exchange was last traded at 249.5 US cents per kg, down 7 cents. “Investors liquidated contracts ahead of the weekend to avoid risks as rubber demand remained poor and prices failed to break above the 265 resistance,” said a Bangkok-based dealer. Dealers said a weak demand outlook for oil was another negative factor that weighed on TOCOM prices.