TOKYO (Dec 6): Benchmark Tokyo rubber ended a three-session rally on Wednesday, declining from a two-month high hit the previous day, on profit booking and a plunge in Shanghai futures.
The Tokyo Commodity Exchange (TOCOM) rubber contract for May delivery finished 4.2 yen or 2.0% lower at 205.2 yen (US$1.83) per kg. On Tuesday, it hit its highest since Sept 28 at 211.1 yen.
“Investors took profits after the benchmark reached a technical milestone,” said Toshitaka Tazawa, an analyst at commodities broker Fujitomi Co.
Tuesday’s high represented a half-way recovery from the November low of 187.8 yen to the September high of 234.7 yen, he added.
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“But it is not clear whether the market will be headed lower or higher from now,” he said.
On the downside, the most-active rubber contract on the Shanghai Futures Exchange for May delivery plunged 440 yuan or 3% to finish at 14,330 yuan (US$2,167) per tonne.
The front-month rubber contract on Singapore’s SICOM exchange for January delivery last traded at 145.4 U.S. cents per kg, down 1.0 cent.
(US$1 = 112.1500 yen)
(US$1 = 6.6138 Chinese yuan)