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Key TOCOM rubber futures edged up on Thursday tracking gains in shares and oil, but a decline in the Shanghai market and concerns on sluggish demand capped gains. "The market managed to stay in the positive territory helped by gains in share and oil prices, but trading was thin and a decline in the Shanghai market weighed on the Tokyo market," said Toshitake Tazawa, analyst at trading house Fujitomi Co.
The key Tokyo Commodity Exchange rubber contract for May delivery settled up 0.4 yen at 255.8 yen per kg. The contract rose as high as 257.3 yen. The most active Shanghai rubber contract for May delivery closed down 0.2 percent at 23,660 yuan per tonne. The front-month January contract on the SICOM in Singapore was last traded at 279 US cents per kg, down 0.4 percent. Heavy rains disrupted rubber tapping in Thailand and Indonesia, but recent weakness in global benchmark Tokyo futures and rising inventory in main consumer China weighed on tyre grade prices, dealers said on Thursday.

Copyright Reuters, 2012

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