Tokyo rubber moves higher

Tokyo rubber futures rose modestly on Friday due to short-covering by day-traders on the back of concerns about falling supply, but weaker oil prices weighed on the market. The benchmark rubber contract on the Tokyo Commodity Exchange rose 1.8 yen to end the morning session at 321.8 yen ($2.94) per kg.
The benchmark fell to a session low of 317.6 yen, tracking weaker oil prices, but short-covering and speculative buying pushed prices higher, dealers said. US crude oil futures rebounded to $116.60 per barrel in early trade on Friday, but that was still well below $119.15 per barrel marked on Thursday.
"Technical sentiment was not so good as oil prices were still volatile, but rubber still got support from concern about supply," one dealer said. Physical prices remained firm as unusual rains hit producing countries, disrupting tapping, traders said.