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Markets

Key TOCOM contract flat, holds above support

Published Updated

 BANGKOK: The benchmark Tokyo rubber contract ended flat on Wednesday as profit-taking emerged after a jump early in the session, but prices were still supported by tight supply in producing countries, dealers said.

* The benchmark rubber contract on the Tokyo Commodity Exchange for August delivery lost just 0.3 yen to settle at 433.6 yen ($5.38) per kg. Other contracts rose by 1.5 to 5.0 yen.

* August jumped 3 percent to a high of 446.9 yen early on Wednesday, prompting some players to take quick profits.

* "TOCOM rubber should rise further after the price finished above the strong support level at 430 yen," one dealer said. Others noted that demand remained strong while supply was tight.

* The most active Shanghai rubber contract for May delivery rose 750 yuan to finish at 36,650 yuan ($5,580) per tonne.

Copyright Reuters, 2011

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