RUBBER PRICE Nov 24: Falls Sharply With Other Commodities, Pressured by Fed Sentiments

Rubber for April 2016 delivery, the most active contract on the Tokyo Commodity Exchange, settled 3.13% lower at 154.70 yen a kilogram.

The rubber price dropped along with other commodities as investors sought safety ahead of a possible Federal Reserve interest rate increase and the long holiday break.

The dollar rose after hawkish comments from Federal Open Market Committee members reinforced speculation that U.S. rates will start to rise in December.

Commodity prices tumbled on the London Metal Exchange, with copper, aluminum and zinc all dropping to their lowest prices since 2009. Nickel touched its weakest level since 2003.

“The market is worried about a U.S. rate hike pushing down on rubber,” Naohiro Niimura, an analyst at Market Risk Advisory Co. in Tokyo, told Bloomberg.

“This is pushing down prices of risk assets across the board, including rubber.”

March 2016 Rubber Futures on TOCOM