Tokyo rubber futures rose on Wednesday on technical buying, snapping a six-day losing streak during which the benchmark contract lost about 7 percent. The key Tokyo Commodity Exchange rubber contract for November 2007 delivery traded at 266.5 yen a kg, up 0.5 yen or 0.2 percent from the previous close.
On Tuesday, the November contract fell as low as 264.7 yen, the lowest for any benchmark since March 19. The TOCOM market has been pressured by weakness in oil prices increased preference by fund managers of the dollar and US Treasuries to commodities, and improving supplies in rubber producing countries.
London Brent crude, currently seen as the benchmark, dropped below $69 a barrel on Tuesday amid expectations that US gasoline supplies rose for the sixth straight week.
The dollar was around 121.65 yen in trade, little changed from late New York and holding onto recent gains from a trough of around 120.80 yen marked last week. A weaker yen inflates yen-based TOCOM futures prices. TOCOM gains may be limited, however, by a slide in other commodities, such as gold, and softness in physical rubber prices.
Comments
Comments are closed for this article.