Tokyo rubber slips

Tokyo rubber futures eased on Wednesday, succumbing to profit-taking after failing to top the key 140 yen level in the absence of supportive factors.
The benchmark February 2005 contract on the Tokyo Commodity Exchange settled down 0.8 yen per kg at 138.5 yen, a session low, after climbing as high as 139.8 yen. The day's peak was the highest on a continuation basis since it marked 141.7 yen on August 16.
Other months fell by 0.3 to 1.1 yen. TOCOM rubber has shuffled between 135-140-yen since mid-August as the market grapples to find new direction. A Tokyo broker said there had been little to maintain the upward momentum, and that the absence of China, a major rubber consumer and importer, was weighing on the market.
"The market may break out (of range-trade) as the expiry of the spot contract nears," he added. The spot September contract expires on September 24. The firm yen also weighed on the rubber market.