Tokyo rubber futures edged higher on Tuesday on the back of firmer oil prices, but the upside was still capped by profit-taking as players remained cautious about recent rises, dealers said. The benchmark rubber contract on the Tokyo Commodity Exchange for November delivery rose 0.3 yen to settle at 390 yen ($4.817) per kg.
The most-active Shanghai rubber contract for September delivery rose 295 yuan to finish at 32,850 yuan ($5,067.113) per tonne. "TOCOM sentiment improved and was still supported by firmer oil prices, but it seemed like players did not believe prices could rise much higher so they took profit," one dealer said. Brent rose above $115 a barrel on Tuesday as the dollar weakened against a basket of currencies on improved prospects of a bailout for debt-laden Greece.
But the dollar on Tuesday gained against the yen to as much as 81.77, making it more attractive to buy yen-denominated contracts on TOCOM. TOCOM rubber was expected to stay firm this week as prices were likely to be trapped in a narrow range of 390 to 400 yen per kg on firm oil prices and limited supply on the physical market, traders said.
Comments
Comments are closed.