Tokyo rubber pares gains on profit taking

Print this page Posted on : 04-24-2008 by recycleinme.com

Tokyo rubber futures ended higher on Wednesday, supported by firm oil prices and limited supply, but gains were capped by profit taking.

The benchmark rubber contract on the Tokyo Commodity Exchange for September delivery rose ¥2.5, or 0.9 per cent, to settle at ¥289.7 ($2.81) per kg. It rose more than 1 per cent to an intraday high of ¥290.4 before profit taking set in. TOCOM rubber was expected to rise further on Thursday as strong oil prices and limited supply provided support, dealers said.

In the physical market, rubber prices were higher, in line with rising TOCOM.

Trading was active with major tyremakers buying several grades of rubber, but China, the world's biggest buyer, was largely absent, traders said. Malaysian SMR20 was sold at $2.68 per kg, while Indonesia SIR 20 was at $1.23 per lb, traders said.

Source : Business Line