Tokyo rubber futures edged up, but fell off from early highs on Thursday as a sharp drop in US car sales and weakness in oil prices triggered profit-taking. But unseasonal rain in producing countries could be disrupting tapping. The political crisis in Thailand provided solid support to prices.
As of 0356 GMT, the key Tokyo Commodity Exchange rubber contract for February delivery was trading at 309.2 yen per kg, up 1.0 yen or 0.3 percent from Wednesday. It briefly hit an intraday high of 312.6 yen.
Prices edged up as traders were buying back to adjust their positions following a volatile price moves earlier in the week, but the market ran out of steam after meeting a resistance at the five-day moving average of around 312 yen.
On Tuesday, the key contract plunged to a one-week low of 307.0 yen after touching a one-month high of 324.9 yen on Monday.Falling Japanese rubber stocks kept the spot September contract buoyant. It was up 2.3 yen or 0.7 percent at 338.3 yen. Japan's crude rubber inventories fell 2.7 percent to 6,187 tonnes in the 10 days to August 20, data compiled by the Rubber Trade Association of Japan showed on Thursday.
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