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Tokyo rubber futures rebounded from one-month lows in thin trading on Monday as the yen's fall against the dollar induced mild short-covering amid a lack of fresh fundamental incentives, brokers said.

The benchmark February 2005 contract on the Tokyo Commodity Exchange (TOCOM) settled up 1.5 yen per kg at the day's high of 137.2, recovering from a low of 135.7.

The spot September contract ended up 1.1 yen at 136.1, with other months gaining 1.3 to 2.0 yen. "The market regained some ground today as the yen slipped against the dollar. But underlying sentiment remained bearish," a Tokyo broker said.

The benchmark rubber contract hit a one-month low of 134.9 yen last on Friday on the view that China was holding large rubber stocks.

Technically, the contract is set to test the July low of 132.1 yen in the short term, and could go below 130 yen if it breaks through the support, the broker said.

The dollar was at 110.17/21 yen compared with 109.62 in late on Friday New York trade.

The volume of TOCOM rubber traded on Monday was 4,277 lots, down from Friday's 5,972.

Open interest stood at 36,105 lots as of the end of Friday, compared with 35,826 lots on Thursday.

Copyright Reuters, 2004


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