Key Tokyo rubber futures inched down on Tuesday, coming under pressure after oil prices reversed their recent gains. The key Tokyo Commodity Exchange rubber contract for June delivery stood at 274.8 yen per kg late on Tuesday, down 2 yen or 0.7 percent from the previous settlement of 276.8 yen.
The contract hit an intraday high of 278.9 yen on Friday, the highest for any benchmark since September 2008. Rubber could be supported as some signs of global economic recovery emerge, but fresh supply could prevent a spike up in prices. Natural rubber output from Indonesia, the world's second-largest rubber grower after Thailand, is expected to grow nearly 5 percent to 2.5 million tonnes in 2010, an industry official said on Tuesday.
Indonesia may export around 2 million tonnes of rubber next year, up from an estimated of 1.93 million tonnes this year, said Asril Sutan Amir, the chairman of the Rubber Association of Indonesia.
On Monday, the Key Tokyo rubber futures rose for the third straight session, helped by a weaker yen and steady oil prices. The key Tokyo Commodity Exchange rubber contract for June delivery was up 0.3 yen at 276.6 yen per kg in late trade after rising as high as 278.6 yen.
The contract hit an intraday high of 278.9 yen on Friday, the highest for any benchmark since September 2008. Oil reached a four-week high above $78 per barrel on Monday, extending gains into a fourth day, buoyed by signs of an economic recovery in the United States and large declines in US crude inventories.
The dollar held near recent highs against the yen on Monday, helped by demand from Japanese corporates before the year-end. The dollar was up 0.4 percent at 91.50 yen, staying near a two-month high of 91.88 yen set last week. A weaker yen inflates yen-priced TOCOM futures and supports market sentiment.
Comments
Comments are closed.