Tokyo rubber futures jumped 3.3 percent to a two-week intraday high on Wednesday on the back of firmer oil prices and surprisingly strong US June auto sales, but market players remained cautious ahead of the EU central bank's policy meeting on Thursday. The benchmark rubber contract on the Tokyo Commodity Exchange for December delivery rose 5.4 yen to settle at 256.6 yen ($3.21) per kg, after jumping 3.3 percent to an intraday high of 259.6 yen per kg, the highest since June 18.
Dealers said TOCOM prices should rise further, but gains were expected to be capped at about 260 yen per kg, a level that could trigger profit-taking. The most-active rubber contract on Shanghai rubber exchange for September delivery finished up 35 yuan at 23,915 yuan ($3,800) per tonne.
The front-month August rubber contract on Singapore's SICOM exchange was last traded at 296.0 US cents per kg. "Bright US auto sales and firm oil prices helped support TOCOM rubber, but players are still worried about the ECB's decision on interest rates," said a Bangkok-based dealer.
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