Tokyo rubber futures edge up on firm oil, but gains still limited

REUTERS: Tokyo rubber futures ended higher yesterday on the back of firm oil prices, but gains were still limited, dealers said.

The benchmark rubber contract on the Tokyo Commodity Exchange for June delivery rose 1.7 yen to settle at 257.0 yen per kg.

“Firm oil prices helped spur buying on TOCOM, but gains were sill capped by thin trading volume,” said a Bangkok-based dealer.

Trading volume was 7,519 lots, compared with more than 10,000 lots traded normally.

Brent crude rose towards $108 a barrel yesterday, supported by continued concerns over supply from the Middle East and North Africa, but gains were capped by a stronger dollar.

Dealers said TOCOM prices could rise further on Friday after finishing above a major support level of 255 yen, but profit-taking ahead of the weekend could cap the gains.

The most-active rubber contract on the Shanghai Futures Exchange for May delivery gained 75 yuan to finish at 16,855 yuan per tonne.

The front month rubber contract on Singapore’s SICOM exchange for February delivery was last traded at 218.5 cents per kg, down 0.2 cent.