TOKYO (Sept 9): Benchmark Tokyo rubber futures edged higher in light trade on Friday, as buys on firmer Shanghai futures outweighed position adjustment sells ahead of the weekend, which contributed to a second weekly gain.
The Tokyo Commodity Exchange (TOCOM) rubber contract for February delivery finished 0.7 yen or 0.4% higher at 158.8 yen (US$1.55) per kg, after rising to a high of 159.6 yen, near a 3-week high touched earlier this week.
For the week, it managed to book a 1.1% gain.
“The market has been trying to break through a ceiling of 160 yen, but some investors with short positions have apparently tried to cap the gains,” a Tokyo-based dealer said.
The TOCOM futures, which set the tone for tyre rubber prices in Southeast Asia, climbed to the highest since Aug 16 of 160 yen earlier this week, but failed to maintain that level due to a lack of fresh supporting factors.
“The TOCOM has been stuck within a narrow trading range too long and I expect the market to move toward 165 yen next week,” the dealer said.
The most-active rubber contract on the Shanghai futures exchange for January delivery rose 80 yuan to finish at 12,775 yuan (US$1,913.06) per tonne.
Oil prices pulled back on profit-taking on Friday, after settling more than 4% higher a day earlier, following a surprisingly large drawdown in U.S. crude stocks as Gulf Coast imports slumped to a record low.
The front-month rubber contract on Singapore’s SICOM exchange for October delivery last traded at 131.7 U.S. cents per kg, up 0.3 cent.
(US$1 = 102.1700 yen)
(US$1 = 6.6778 Chinese yuan)