Tokyo rubber futures firmed on Tuesday on technical buying after hitting a new five-month closing low the previous day, while a rise in oil prices helped soothe the battered sentiment. The benchmark Tokyo Commodity Exchange rubber contract for December delivery was trading up 1.2 yen a kg or 0.5 percent at 247.8 yen.
The key contract on Monday fell as far as 242.9 yen, the lowest for any benchmark since January 10, as its fall below a psychological support of 250 yen triggered a wave of selling. The low was down more than 55 yen from a May peak of 298.5 yen.
TOCOM rubber remained bearish on the charts, with the key contract staying below the long-term moving average for the third day in a row, its 200-day average of 254.2 yen as of Monday's close.
Better weather in producing countries has eased supply concerns and weighed on physical rubber prices. US crude oil traded at $71.19 a barrel, near a 10-month high marked on Monday, amid concerns about a decline in global oil inventories. A rise in oil prices usually encourages the use of natural rubber instead of synthetic rubber, a petrochemical product.
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