Tokyo rubber futures hit record high

Key Tokyo rubber futures hit a record high for the third consecutive day on Friday bolstered by strong physical prices and supply concerns, though traders said the market was now likely to be sensitive to any bearish factors as it has cleared support at 450 yen.
The benchmark rubber contract on the Tokyo Commodity Exchange for June delivery settled up 6 yen, or 1.3 percent, at 454.4 yen ($5.49) per kg, after hitting a record high of 454.7 yen. "The market is jittery after a steep rise in the past two months and a more than 20 yen fall in a day is possible once the market enters a correction phase," a trader said.
Major tyre makers purchased Indonesian rubber at record prices above $5 a kg for March shipment, while top consumer China was also in the market to stock up on fears that prices would rise further, dealers said on Friday. Rubber inventories in warehouses monitored by the Shanghai Futures Exchange fell 0.3 percent from a week earlier, the exchange said on Friday.