Tokyo rubber futures rose on Thursday, trimming the previous day's steep falls as a recovery in other commodities such as crude oil and gold encouraged buying on dips. The benchmark rubber contract on the Tokyo Commodity Exchange for October delivery was up 1.7 yen or 0.6 percent at 277.8 yen a kg.
On Wednesday the October contract hit a low of 274.1 yen, down 9.7 yen from the previous close and the lowest for any benchmark since March 20, having slipped from a nine-month high at 299.5 yen on April 17.
Analysts said Japanese investors were mostly hesitant to build fresh positions ahead of a series of public holidays beginning next week. While technical resistance lines are seen at around 286 yen, which are the seven- and 25-day moving averages, limited rubber supply soon after the end of the wintering dry season provides support to the TOCOM market. Farmers in Thailand have recently resumed tapping in the main rubber-producing south.
But latex output has not risen immediately as rubber trees need time to rejuvenate after being parched during the dry season and supply was still limited, traders said.
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