Tokyo rubber futures ended higher on Thursday, coming off a 2-month high hit in the morning session as profit-taking and concerns about rising stocks weighed on the market, dealers said. The benchmark rubber contract on the Tokyo Commodity Exchange for October delivery rose 0.6 yen to settle at 276.8 yen ($2.80) per kg.
The contract rose as much as 9 yen, or 3.3 percent during intra-day trade to 285.2 yen per kg, the highest since March 13 before profit-taking set in. "TOCOM prices retreated as players took profit. Some players also liquidated contracts due to fears about rising stocks," said a Bangkok-based dealer. The most-active rubber contract on Shanghai futures exchange for September fell 170 yuan to settle at 20,335 yuan ($3,300) per tonne.
The front-month June rubber contract on Singapore's SICOM exchange was last traded at 256.7 US cents per kg, down 2 cents. Crude rubber inventories at Japanese ports as of April 30 exceeded 16,000 tonnes for the first time since June 10, 2007, when inventories totalled 16,717 tonnes, data from the Rubber Trade Association of Japan showed. Dealers said TOCOM prices could rise further on Friday after prices finished above a major support level of 275 yen, but upside was likely to be capped by profit-taking.