16 January 2014, 18:04 SEAST
Asian rubber settled mixed Thursday amid the lack of strong fundamental cues although bellwether Japan rubber was steady as the weak yen gave support.
Benchmark June natural rubber on the Tokyo Commodity Exchange settled Y0.8 higher at Y256.4 a kilogram.
Steady front-month prices also help as the bullishness in the nearby contracts–an indication of demand–will likely keep any declines in the benchmark month limited, a Singapore-based broker said. Prices are likely to move between Y250/kg and Y260/kg on Friday, he added.
International Rubber Consortium Chief Executive Yium Tavarolit said in a weekly note that coming low-production season and strong China motor-vehicle sales are supportive.
“Rubber prices will recover from current levels in the coming months if rubber market fundamentals [outweigh] currently weak rubber-market sentiment and investor confidence,” he wrote.
June Tocom rubber closed Y0.4 lower at Y256/kg in the night session, which is considered part of the next trading day.
Benchmark May natural rubber on the Shanghai Futures Exchange closed 0.5% higher.
Physical rubber prices were little changed in slow trade amid a lack of strong cues. “The market lacks stamina. Prices cannot find support for further upside,” said a Singapore-based dealer about the drop in prices in Tocom’s night session.
Dow Jones , Bangkok