Tokyo rubber futures retreated from an almost 18-month high on Thursday as profit-taking kicked in ahead of year-end holidays, but prices remained supported. The benchmark rubber contract on the Tokyo Commodity Exchange for June 2008 delivery fell 0.5 yen to 310.2 yen ($2.72) per kg.
The benchmark touched the intra-day high of 313.3 yen, the highest since July 2006 before profit taking set in. "Prices would slide again on Friday, leaving smaller room for profit-taking," he added. The TOCOM market will be open for a half-day session on Friday and closed for Japan's New Year holidays until January 4, when trade resumes for half a day. However, TOCOM prices should rebound when trading resumed next year, supported by a weaker yen and limited supply on the physical market, dealers said. A weak yen inflates yen-based commodity futures prices, often drawing fund buying into rubber futures.