Key Tokyo rubber futures erased earlier gains on profit taking but hovered near a 30-year high on Monday, supported by strength in other commodity markets and tight supply. The key Tokyo Commodity Exchange rubber contract for April delivery settled at 359.2 yen per kg, down 2.5 yen or 0.7 percent from Friday, after rising as high as 364.2 yen earlier.
The benchmark contract on Friday jumped nearly 5 percent to a peak of 364.8 yen, the highest since March 1980, on heavy speculative buying following the Federal Reserve's latest move to boost the US economy. The most active Shanghai rubber futures contract for May delivery also hit a record high of 37,070 yuan per tonne on Monday before retreating to end at 35,865. Volume was heavy at about 1.28 million lots.
On Friday, the contract settled at its daily limit-high of 35,025 yuan per tonne. Traders have said that while supply concerns in producing countries, hit by heavy flooding, underpinned demand, investors were wary of the recent rapid pace of gains and took profits when the dollar strengthened.
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