Tokyo rubber futures ended slightly lower on Wednesday as players took quick profits after initial gains that tracked a rise in crude oil, dealers said. The benchmark rubber contract on the Tokyo Commodity Exchange for August delivery slipped 1.2 yen to settle at 475.9 yen ($5.82) per kg.
"Prices rose higher, on the back of oil prices, to a level where players could make a profit," one dealer said. The most active Shanghai rubber contract for May delivery fell 505 yuan to settle at 38,860 yuan per tonne. Dealers said TOCOM rubber could rebound on Thursday after prices found a major support level at 475 yen per kg.
Key Tokyo rubber futures rose on Wednesday as sentiment improved on an overnight rally in oil prices and as supply concerns remained. US auto sales surged by 27 percent in February, exceeding the most bullish analyst forecasts as the lure of discounts from automakers led by General Motors Co outweighed concerns about higher oil prices for car shoppers. Carmakers are warning that spiking oil prices threaten the auto industry recovery by scuppering sales of gas-guzzling pickups and SUVs, though boosting demand for low-emission electric and hybrid vehicles.
Comments
Comments are closed for this article.