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The most active contract on Tokyo rubber futures ended slightly lower on Thursday, but was off its lowest in a week as bargain hunters resurfaced after the US dollar rebounded against the yen. The benchmark rubber contract on the Tokyo Commodity Exchange for January delivery closed 1.7 yen per kg lower at 276.1 yen after falling as low as 273.5 yen, its lowest level since August 2.
The contract was still within sight of a 5-week high at 287 yen hit last week and hovered above the closely-watched 50-day moving average. The physical market was quiet, with Thai markets closed for a holiday. There were deals earlier this week for Indonesia's SIR20 tyre grade at around $3.08 a kg for September shipment.
The euro bounced on Thursday, as heavy selling abated on early signs euro zone peripheral spreads were stabilising. A Reuters poll in August showed Tokyo rubber futures are forecast to hold at relatively firm levels in the next two months because of strong Asian demand, even though trade in the United States and Europe will slow because of holidays.

Copyright Reuters, 2010

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