SINGAPORE, Jan 4 (Reuters) – Global benchmark Tokyo rubber futures could extend the current rally next week after a decline in the yen spurred buying from speculators, while rising global supply is set to cut Thai raw sugar premiums, dealers said on Friday.
The most-active rubber contract on Tokyo Commodity Exchange, currently June hit a high of 312.4 yen, the highest for any benchmark since May, which was also driven by a fiscal deal to avoid a recession in the United States.
“It looks like rubber will get strong support at 300 yen. I don’t think it’s going to fall after the United States managed to avoid a ‘fiscal cliff’, at least temporarily,” said a dealer in Kuala Lumpur.
“It should trade between 300 and 320 yen in the short term.”
The Tokyo market typically sets the tone for physical prices, but futures contracts are often influenced by macroeconomics. It ended 2012 with a 15 percent gain on a weaker yen, higher stock markets and speculation over buying by China before the Lunar new year holiday next month.