Tokyo rubber futures rose to a three-week high on Friday due to short covering and technical support from crude oil. The benchmark Tokyo Commodity Exchange rubber for May delivery broke the key resistance of 210.0 to settle at 214.9 yen ($1.86) per kg, up 9.3 yen from Thursday's close.
It rose as high as 215.0 yen, it's highest since November 14. "Funds were the major buyers today and they bought heavily," a dealer in Tokyo said. "Short-covering from funds and speculators pushed prices to stay above 210.0 yen very fast."
Prices were expected to rise towards 220.0 yen over the next week due to technical support after breaking through the 210.0 resistance, dealers said. "Statistically, prices could maintain their rise. After moving higher than 210.0 yen, they could move towards 220.0 yen," a dealer in Singapore said.
The rubber futures rise was also helped by firmness in US crude oil futures, which edged up towards $63 in early Asian trade on Friday ahead of a meeting next week at which Opec will decide whether to cut output further.
Announcements by Thailand and Indonesian, the world's number- one and two rubber producers, on actual or possible export curbs also lent support, traders said. Thailand said it could suspend exports for a few weeks this month to help prices and Indonesia said it would cut exports by 10 percent next year.
Indonesia's SIR20 was buoyant after the announcement and traded on Thursday night at 70.50-70.75 US cents per pound, free on board, for February shipment, while March delivery deals were made at 70.75-71.00 US cents per pound. On the physical front, offers for Asian rubber were barely changed on Friday as the rises on the Tokyo Commodity Exchange lent support. However, thin demand kept a lid on any potential rises, traders said.
Comments
Comments are closed.