Tokyo rubber futures edged lower on Monday, tracking falls in Shanghai futures, while investors booked profits after a recent rally, dealers said. However, technical sentiment improved after prices found a strong support level of 250 yen, they said.
The benchmark rubber contract on the Tokyo Commodity Exchange for September delivery was down 2.3 yen to settle at 250.9 yen per kg. "TOCOM prices followed weaker Shanghai futures prices, while profit-taking was another negative factor that pulled the market down eventually," said a Bangkok-based dealer. The most-active rubber contract on Shanghai futures exchange for September delivery was down 710 yuan to finish at 18,915 yuan per tonne.
The front-month May rubber contract on Singapore's SICOM exchange was last traded at 235.5 US cents per kg, down 7.3 cents. Dealers said TOCOM prices could rebound on Tuesday after prices finished above a major support level of 250 yen.