Benchmark Tokyo rubber futures ended flat on Wednesday after profit-taking was offset by a flurry of short-covering in quiet trade as the week-long Lunar New Year holiday started in China, dealers said. The Tokyo Commodity Exchange (TOCOM) rubber contract for July delivery finished 0.1 yen lower at 218.3 yen ($2) per kg, after retreating from an intraday high of 221.0 yen. The dollar was quoted at 119.15 yen in late Asia trade, against 118.61 yen the previous day.
In a move to support rubber prices, Thailand's farm minister said on Wednesday that the government will begin a second round of rubber buying from the market through a 6 billion baht ($184.22 million) buffer fund. TOCOM futures, which set the tone for tyre rubber prices in Southeast Asia, have gained more than 11 percent this month, amid lesser supply of raw material in Indonesia and expectations of tightness elsewhere. The front-month rubber contract on Singapore's SICOM exchange for March delivery closed at 141.7 US cents per kg, down 1.5 cent. SICOM closed early on Wednesday and will remain shut on Thursday and Friday.
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