TOKYO (Sept 6): Benchmark Tokyo rubber futures rose for a third straight day on Wednesday, hitting an over-three-month high, as the continuing rally in Shanghai futures raised risk appetite among investors in Tokyo, dealers said.
The Tokyo Commodity Exchange (TOCOM) rubber contract for February delivery finished 4.9 yen, or 2.1%, higher at 233.5 yen (US$2.15) per kg, after hitting the highest since May 24 of 234.7 yen earlier in the session.
“Tokyo market followed Shanghai’s extended gains which were supported by purchases from speculative investors in China who see encouraging signs in technical charts,” a Tokyo-based dealer said.
The most-active rubber contract on the Shanghai futures exchange for January delivery rose 300 yuan to finish at 17,570 yuan (US$2,692) per tonne. It earlier climbed to as high as 17,840 yuan, marking the highest since March 22.
“But I expect to see some profit-taking later this week before heading higher again next week,” the dealer said.
The front-month rubber contract on Singapore’s SICOM exchange for October delivery last traded at 170.0 US cents per kg, up 0.9 cent.
London copper dipped on Wednesday after retreating from three-year highs in the previous session, as investors booked profits amid ongoing tensions over North Korea.
(US$1 = 108.7600 yen)
(US$1 = 6.5260 Chinese yuan)
