Tokyo rubber futures edged up on Thursday due to gains in other yen-based commodities, including energy, and after sustaining a key chart level the previous day, but sentiment stayed weak after sharp falls since last week.
The key December TOCOM contract was up 0.8 yen or 0.3 percent at 257.2 yen a kg. On Wednesday, the key contract fell to 256.2 yen, matching the low reached on March 9.
Rounds of short covering emerged in trade as the key contract managed to sustain the low of around 256-yen. Rubber was also supported as yen-denominated precious metals and energy prices posted strong gains. Key TOCOM gold futures rose nearly 1 percent and TOCOM gasoline rose 1.1 percent.
But TOCOM rubber remained bearish on the charts, struggling below the seven-day moving average of 262.9 yen and the 14-day average of 265.9 yen. Traders are watching whether it could stay above the 200-day moving average of 254.0 yen.
The market paid closer attention to the supply situation in Thailand amid speculation that tapping in the country had been delayed by heavy rain.
Trading was also nervous after United States transportation officials on Tuesday formally insisted a New Jersey importer recall up to 450,000 Chinese-made tyres.
Comments
Comments are closed for this article.