Tokyo rubber futures inched lower Monday after hitting a two-week high in early session due to profit-taking amid thin trade ahead of New Year holidays, dealers said. The benchmark rubber contract on the Tokyo Commodity Exchange for June delivery edged 1.9 yen lower to settle at 276.4 yen ($3.54) per kg.
It rose 1.1 percent to 281.5 yen per kg, the highest since December 12 before profit-taking took hold. "TOCOM should rise higher after reaching a two-week high level as the rubber market got support from firm oil and share prices, but it is profit-taking that dragged prices down in an afternoon session, one dealer said. Asian shares and the euro rose on Monday as signs of US economic recovery underpinned sentiment, although trading was expected to be subdued with many markets closed for extended Christmas holidays.
Oil prices rose for a fifth straight day on Friday, on concerns about potential supply disruptions in Iran and Iraq and recent signs of a strengthening US economy.
Dealers said TOCOM prices could rise higher on Tuesday after prices finish above a key psychological support level of 270 yen. However, possible profit-taking could cap the rises.
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