TOKYO, Oct 29 (Reuters) – Benchmark Tokyo rubber futures settled up 0.5 percent on Tuesday, but the market mostly traded in a narrow range amid a lack of strong factors to break through a key level, brokers said.
The benchmark rubber contract on the Tokyo Commodity Exchange (TOCOM) for April delivery rose 1.2 yen to settle at 261.2 yen ($2.67) per kg.
“TOCOM market is becoming rigid, where TOCOM buy does not lead to fresh buys,” said a Tokyo-based broker source. “TOCOM’s rigidity is spreading across Asia, with Shanghai prices also little changed.”
Tokyo rubber futures may struggle to breach a key resistance level, while prices of other soft commodities in Asia could trade in a wide range this week partly due to demand concerns, dealers said.
The most active rubber contract on the Tokyo Commodity Exchange, currently April, has dropped about 14 percent this year on a firmer yen and global economic worries. The contract sank to a 9-month low at 225 yen a kg in June.
The most-active rubber contract on the Shanghai futures exchange for January delivery rose 75 yuan to finish at 19,465 yuan ($3,200) per tonne.
The front-month rubber contract on Singapore’s SICOM exchange for November delivery last traded at 230.00 U.S. cents per kg, up 1.7 cents.
Rubber farmers in Thailand took to the streets again on Monday to demand the government buy their produce at prices higher than the market, rejecting a subsidy offered last month and threatening violence if their demands are not met.
($1 = 97.7100 Japanese yen) ($1 = 6.0855 Chinese yuan)
(Reporting by Osamu Tsukimori; Editing by Sunil Nair)
Source: Reuters
