BANGKOK, Feb 24 (Reuters) – Tokyo rubber futures edged higher
on Wednesday, supported by the recent rise in oil prices and
tight supply on the physical market, but a stronger Japanese yen
capped the gains, dealers said.
* The benchmark rubber contract on the Tokyo Commodity
Exchange <0#JRU:> for August delivery rose 0.7 yen to settle at
301.5 yen ($3.34) per kg.
* Dealers said TOCOM rubber was likely to remain firm.
Falling supply in Thailand, the world’s biggest rubber producer
and exporter, was expected to hold cash rubber prices above $3.0
per kg for some months, traders said. [ID:nSGE61M05N]
* Oil edged above $79 a barrel on Wednesday after
industry data showed an unexpected fall in U.S. crude inventories
last week, in contrast to analysts’ forecasts for a stock build.
[O/R]
* “Fundamental factors could provide support to TOCOM rubber
for some weeks from now, but other factors, such as the yen,
still weighed on prices,” a Japanese dealer said.
* The yen held on to hefty gains, aided by safe-haven inflows
as the investor mood darkened considerably on doubts about the
pace of the global economic recovery. [USD/]
* Dealers said they expected TOCOM price to rise further on
Thursday as technical sentiment improved after prices finished
above the key psychological level of 300 yen per kg.
($1=90.21 Yen)

Source: Reuters

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