Tokyo rubber futures slipped lower on Friday as players took profits to avoid risk ahead of the weekend, but tight supply on the physical market and firm oil prices still provided support, dealers said. The benchmark rubber contract on the Tokyo Commodity Exchange for August delivery fell 3.8 yen to settle at 475.0 yen ($5.80) per kg.
"The market was a bit overbought and players as well as investment funds just took profits ahead of the weekend," one dealer said. The most active Shanghai rubber contract for May delivery fell 70 yuan to settle at 38,285 yuan ($5,819) per tonne. Oil rose more than $1 a barrel to over $112 on Friday as unrest in Libya sparked fears of supply shortages, despite assurances by top oil exporter Saudi Arabia that it would step in to fill any shortfall. TOCOM rubber was expected to rebound after prices finished above the key psychological level of 470 yen per kg, while seasonal tight supply in producing countries should provide support, dealers said.
Comments
Comments are closed for this article.