Tokyo rubber falls as yen rises

Print this page Posted on : 10-02-2007 by recycleinme.com

Tokyo rubber futures retreated from an 8-week high on Monday, falling more than one per cent due to losses in energy prices and a firmer Japanese yen.

The benchmark rubber contract on the Tokyo Commodity Exchange for March delivery fell 3.8 yen, or 1.5 per cent, to end the morning session at 257.5 yen ($2.23) per kg.

On Friday, the contract rose as far as 262.4 yen – the highest for any benchmark since Aug.3.

TOCOM rubber was expected to remain supported by limited supply in Asia’s main producing countries. But rises in physical prices were likely to be capped by thin trading, traders said.

China had bought a lot of Indonesian SIR 20 at around $0.97-$0.98 per pound for November shipment through a Singapore-based dealer last week, an Indonesian trader said.

Source : Business Line