Tokyo rubber futures edged lower on Thursday on profit-taking after recent rises, while the market remained cautious ahead of a European Central Bank decision on interest rates, dealers said. The benchmark rubber contract on the Tokyo Commodity Exchange (TOCOM) for December delivery slipped 1.8 yen to settle at 254.8 yen ($3.19) per kg.
The most-active rubber contract on the Shanghai futures exchange for September delivery advanced 250 yuan to finish at 24,165 yuan ($3,800) per tonne. The front-month August contract on Singapore's SICOM exchange last traded at 294.0 US cents per kb, down 2.0 cents.
"TOCOM sentiment was better and that encouraged players to take profits, while other small players liquidated contracts to avoid risks before getting clear direction from the ECB," one dealer said. The ECB meets on Thursday with the market expecting it to cut borrowing costs to a record low to support a deteriorating euro zone economy. TOCOM rubber was expected to rebound again on Friday if the ECB cuts interest rates as expected. However, the upside was likely to be capped again by profit-taking, dealers said.
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