Tokyo rubber futures inched down on Tuesday as traders continued to take profits after prices hit a three-week high the previous day, while the lead contract managed to hover around the key 300 yen level. The benchmark rubber contract for July delivery on the Tokyo Commodity Exchange was down 1.1 yen at 299.8 yen ($2.81) per kg by 0147 GMT.
The lead contract's ability to trade within sight of the psychological level of 300 yen suggested market sentiment was fragile but not too poor. On Monday, it rose as high as 304.1 yen, the highest since January 15, before profit taking set in. It closed down 0.9 yen at 300.9 yen.
The market could later draw support from steady US crude futures prices, which were hovering just below $90 a barrel, supported by news that a dense sea fog had halted crude imports into a waterway to the busiest US petrochemical port. NYMEX crude for March delivery fell 14 cents to $89.88 a barrel in Globex electronic trading.
High oil prices tend to support rubber prices by making synthetic rubber, a crude product and an alternative to natural rubber, more expensive. In the currency market, activity in Asia has been subdued so far this week, partly due to Lunar New Year holidays across much of the region later in the week. The dollar was little changed from late US trade at 106.68 yen, holding off a three-year low of 104.95 yen struck in January.
Comments
Comments are closed.