Tokyo rubber future ended lower on Friday as investors took profit ahead of the weekend, but prices were still supported by a rise in other commodities. The benchmark rubber contract on Tokyo Commodity Exchange for August delivery settled at 278.5 yen ($2.36) per kg, down 0.4 yen from Thursday's close.
The benchmark rose as high as 282.8 yen per kg as players bought on dips and some speculators covered short positions. But prices were brought down in the last hour of trading by profit-taking by day traders, dealers said.
"Prices rose in early trade as players bought on dips, especially players who wanted to offset the March contract ahead of expiry" on March 26, a Tokyo-based dealer said. "But prices failed to break 285.2 yen and that signalled players to sell," he said.
However, TOCOM prices were expected to rebound next week, backed by hefty gains in other commodities such as gold and oil, dealers said. Tokyo gold futures rose to a three-week high on Friday due to firmer energy prices and improved technical sentiment.
"After the expiry of the March contract, I think prices should climb up again to test 290 yen," a dealer in Singapore said. On the physical front, most rubber grades were quoted unchanged and trading remained thin with buyers waiting for prices to drop, traders said.
But Indonesian SIR20 slipped a little as the rainy season was fading and supply was expected to increase gradually, they said. "But the price of SIR20 won't fall sharply because demand remains strong as our prices are still competitive," an Indonesian trader said. Traders said demand for SIR20 remained firm with some deals done at 94.75-95.00 US cents per pound for May shipment and 95.25 US cents per pound for June shipment.