BANGKOK: Tokyo rubber futures ended higher on Tuesday on the back of limited supply and firmness in oil prices, but gains were still capped by profit-taking after a recent rally to a 5-month high, dealers said.
The benchmark rubber contract on the Tokyo Commodity Exchange ended 1.6 yen higher to settle at 328.4 yen ($4.13)per kg.
On Monday, the TOCOM benchmark contract jumped 3 percent to a 5-month high of 328.1 yen per kg.
The most active rubber contract on the Shanghai futures exchange for May delivery rose 680 yuan to finish at 28,910 yuan ($4,600)per tonne.
The front-month March TSR20 rubber contract on SICOM was last traded at 373.50 US cents a kg, down 0.20 cents.
"Rubber futures should rise much higher today as firmness in oil prices should provide support, but profit-taking still weighed on prices," one dealer said.
Brent crude futures held steady near $120 a barrel on Tuesday as the euro zone approved a second bailout package for Greece, while a cut in Chinese and European imports of Iranian oil supported prices.
Dealers said TOCOM rubber could rise further on Wednesday after prices finished above a major support level of 320 yen, while limited supply on the fundamental front should lend an additional support.
Comments
Comments are closed for this article.