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Oil report

Tokyo rubber dips to 3-½ month low as oil slides

TOKYO, Aug 12 (Reuters) - Tokyo rubber futures fell more than 1 percent to a 3-½ month low on Tuesday, as tumbling oil prices triggered a broad decline in commodities that dragged gold and platinum down by their daily limit.

* The key Tokyo Commodity Exchange rubber contract for January delivery <0#JRU:> closed the morning at 303.9 yen a kg, off the session low of 303.1 yen, which is down 4.1 yen or 1.3 percent from the previous day.

It was the lowest level for a benchmark since May 2.

* The TOCOM rubber benchmark is now trading at a level about 15 percent below the 28-year high of 356.9 yen marked on June 30.

* “Commodities as a whole are on a downtrend now, and that’s not something that rubber alone can resist,” a Tokyo trader said.

* He said rubber was likely to test the 300-yen level in the near term, although moves to buy back could emerge once that level is breached.

* TOCOM gold closed the morning down by the 150-yen daily limit after a drop in oil prices sparked selling by speculators, while TOCOM platinum finished down by the 300-yen daily limit.

* U.S. crude oil CLc1 fell below $114 a barrel as the U.S. dollar firmed to six-month highs against the euro, countering concerns over possible supply disruptions due ot the Russia-Georgia clash.

* The dollar was around 110.17 yen JPY=, against late New York levels of 110.09/11 yen.

* Markets in Thailand, the top rubber producer, were closed on Tuesday to mark the Queen’s birthday, but a trader said some selling of physical rubber could emerge because prices have come down so fast. (Reporting by Miho Yoshikawa; Editing by Ben Tan)

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