TOKYO (Dec 5): Benchmark Tokyo rubber futures steadied on Tuesday, after earlier hitting their highest in more than two months, as investors took profits and as a drop in Shanghai futures and weaker oil prices weighed.
The Tokyo Commodity Exchange (TOCOM) rubber contract for May delivery finished 0.1 yen higher at 209.4 yen (US$1.86) per kg. It touched the highest since Sept 28 of 211.1 yen earlier in the session.
The most-active rubber contract on the Shanghai futures exchange for May delivery fell 80 yuan or 0.5% to finish at 14,715 yuan (US$2,225) per tonne. It was still near a two-month high hit in the previous day, amid concerns over the recent fire at a rubber warehouse in China.
Weaker oil prices also added to the pressure, dealers said.
Oil prices fell on Tuesday ahead of U.S. crude inventories data, as the market weighed the impact of rising U.S. crude output versus last week’s deal between OPEC and other crude producers to extend output curbs.
The front-month rubber contract on Singapore’s SICOM exchange for January delivery last traded at 145.7 U.S. cents per kg, down 4.2 cent.
(US$1 = 6.6128 Chinese yuan renminbi)
(US$1 = 112.5100 yen)
