Tokyo rubber futures edge higher

Tokyo rubber futures edged higher on Wednesday on short-covering, but weaker oil still weighed on prices, dealers said. The benchmark rubber contract on the Tokyo Commodity Exchange for October delivery rose 5.7 yen, or 2 percent, to settle at 267.7 yen ($2.91) per kg.
"TOCOM prices found a strong support level around 255 yen and there was strong short-covering that helped support prices," one dealer said. Dealers said they expected players, mostly hedgers, bought rubber from futures market instead of the physical market where supply was still limited as nearby rubber contracts rose significantly. The nearby June contract rose 6.6 yen to settle at 345.4 yen per kg, while the July contract rose 10.7 yen to settle at 305.7 yen per kg.
However, TOCOM rubber was still under pressure as weaker oil prices prevent prices from rising significantly, dealers said. TOCOM rubber was expected to rise further on Thursday, with improving technical sentiment after prices finished above a key psychological level of 265 per kg, dealers said.