Tokyo rubber up 3pc, may rise further
BANGKOK: Tokyo rubber futures rose 3 per cent on Wednesday as funds resumed buying, while technical sentiment improved after prices broke above key resistance of 430 yen.
Further gains, however, were likely to be limited, dealers said.
The benchmark rubber contract on the Tokyo Commodity Exchange for September delivery rose 12.9 yen, or 3 per cent, to settle at 430.1 yen ($5.22) per kg.
The most active rubber contract on Shanghai rubber futures for September delivery rose 785 yuan to finish at 35,100 yuan ($5,350) per tonne.
"The market was overbought and funds got back and started buying again, but it's sill not clear whether TOCOM could rise further to test the new resistance of 440 yen as the market is very volatile," one dealer said. TOCOM rubber was expected to rise further on Thursday after prices finished above 430 yen, the key psychological resistance, but gains were likely to be capped by profit-taking, dealers said. -Reuters
National Commodity Exchange Ltd Trading Summary