By Lewa Pardomuan
SINGAPORE, Nov 18 (Reuters) – Tokyo rubber futures could track Japanese equities higher this week and challenge a key resistance level above 270 yen a kg, while prices of other soft commodities could be determined by weather and supply, dealers said on Monday.
The most active April rubber futures on the Tokyo Commodity Exchange (TOCOM) was a tad lower at 261.7 yen a kg after rising to a two-week high at 263.4 yen last week, but the contract was broadly moving away from a three-month low at 253.5 yen hit in early November.
“I am still bullish on TOCOM until the end of this year. Before the Chinese New Year, which in 2014 will be at end of January, tyre makers may be buying new stocks,” said Gu Jiong, an analyst at Yutaka Shoji Co.
Strength in Japanese and U.S. stock markets also supported the Tokyo rubber market, which could trade in a range of 260 to 275 yen a kg this week, Gu said. “I hope funds will put new money into the Tokyo rubber market and push it up to 265 yen or above that.”
TOCOM rubber sets the tone for tyre-grade prices in main producers Thailand, Indonesia and Malaysia. Its contracts are often influenced by macroeconomics, currencies, equities and politics.
Source: Reuters
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