Tokyo rubber futures slipped on Thursday from a 15-month high, tracking moves in oil prices as a signal of tighter Chinese monetary policy sent commodities down across the board. Initially firm Tokyo futures lifted physical prices in Southeast Asia, where Thai and Malaysian grades were traded at $3 a kg for nearby shipment - the highest price since September 2008.
TOCOM's rubber contract for June 2010 delivery hit a high of 297.2 yen per kg, its strongest since September 2008, and settled at 288.9 yen, down 1.4 yen from the previous settlement. "China started to return to the market since the end of December, so fundamentally, the market is supported," said a dealer in Tokyo.
"So I guess, we have to test 300 yen," said the dealer, referring to a previous high seen in September 2008. Ford Motor Co posted a 44 percent jump in its China vehicle sales last year and aims to outpace growth in the world's largest auto market this year, banking on continued state policy incentives to drive demand.
Oil fell below $83 a barrel on Thursday, after a 15-month high a day earlier, as worries about monetary policy tightening in China knocked commodities across the board. The dollar surged to the day's high of 92.82 yen, up from around 92.20 yen just before Kan's comments reached the market.