Tokyo rubber futures ended higher on Wednesday, tracking a recovery in share prices and oil, but traders said concern about the global economic outlook could still trim demand and prevent strong gains. The benchmark rubber contract on the Tokyo Commodity Exchange for January delivery rose 3.5 yen to settle at 359.0 yen ($4.6) per kg.
The most active rubber contract on the Shanghai commodity exchange rose 245 yuan to finish at 33,030 yuan ($5,136) per tonne. "Rubber prices were pushed up by rising oil and share prices. However, players were still cautious about taking any big position," one dealer said.
Traders said profit-taking after the recent rise in TOCOM prices and the prospect of rising supply in major producing countries should keep futures prices in a narrow range in coming months. Rain has subsided in major rubber areas in Thailand, the world's biggest producer, allowing farmers to tap more latex, so supply should get back to normal over the next few weeks, said a trader in Thailand's Hat Yai rubber centre.
Comments
Comments are closed for this article.