[Dow Jones] Tocom rubber futures settle higher as yen”s gains ease, crude rallied overnight; Shanghai rubber supports. Tocom July spot contract surges, settles Y40 or 11.2% higher at Y397.2/kg as investors cover short positions ahead of contract”s expiry Monday; although Thai production increasing, Japan”s rubber stocks low, August contract may also see similar short covering near expiry next month, says Tokyo-based Kaname Gokon, deputy general manager at commodity brokerage Okato Shoji Co.”s research division. August to December contracts post smaller price increases below Y10 at settlement; forward contracts likely to move sideways next week; overall volumes thin recently as investors on sidelines, unwilling to sell short as inventory levels low in Japan, also not willing to set up long positions as expecting Thai production to increase, yen weighs, adds Gokon. Benchmark December rubber contract settles Y8.3 or 3.2% higher at Y265.6/kg, near intraday high of Y266.2/kg.

Source: Dow Jones

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