Tokyo futures hit three-week high
November 23, 2012
Tokyo rubber futures rose 2 percent to a 3-week high on Thursday on the back of a weaker yen that encouraged players to take speculative buying positions, but profit-taking limited gains, dealers said. The benchmark rubber contract on the Tokyo Commodity Exchange for April delivery rose 5.0 yen to settle at 261.7 yen ($3.18) per kg.
It rose 5.4 yen, or 2 percent, to an intra-day high of 262.1 yen, the highest since October 29. The most-active rubber contract on the Shanghai futures exchange for May delivery was up 100 yuan to finish at 24,445 yuan ($3,900) per tonne. The front-month December rubber contract on Singapore’s SICOM exchange was last traded at $2.81 per kg, down 0.2 cent.
“The weaker yen provided support to rubber futures, but there were some small players who took profit ahead of the weekend,” said a Bangkok-based dealer. Financial markets in Tokyo will be closed on Friday for a public holiday. Trading will resume on Monday. The yen dipped to its lowest since April against a number of currencies, including the dollar, on Thursday as the market expected the next Japanese government would likely implement more drastic monetary stimulus. Dealers said they expected TOCOM prices to rise further next week as technical sentiment improved after prices finished above a major resistance of 260 yen.