Tsunami panic to hit rubber markets next week

NEW DELHI, Mar 12 (Commodity Online): Global rubber markets also took its impact on Japans' tsunami devastations though major tocom prices remained unaffected so far as the Exchange had closed before the news broke out. 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 per cent, 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 per cent to 20693 on Friday and presently trading further down at 20100, a decline of 2.87 per cent. Like many other markets, Indian rubber market also takes price guidance from rubber trades from Tocom