SINGAPORE, Nov 19 (Reuters) – Tokyo rubber futures rallied to
their highest level in 13 months on Thursday as oil moved closer
to $80 a barrel, but dealers also expected a correction as spot
buyers began to complain about high prices.
* TOCOM’s rubber contract for April delivery <0#JRU:> settled
6.3 yen per kg higher at 244.7 yen a kg after trading as high as
245.2 yen — its strongest since last October.
* The contract has gained around 4 percent this week, which
was also driven by tight supplies in Southeast Asia after the dry
wintering season curbed supply in Indonesia and heavy rains
disrupted the flow of latex in Thailand and Malaysia.
* “I think we have to be careful because this market can go
for a sharp correction anytime. There could be profit taking
before we reach new highs,” said a dealer in Thailand’s southern
city of Hat Yai.
* “Also, the problem is whether buyers want to buy at current
levels or not,” he added.
* Physical prices rose in Southeast Asia on Thursday to track
gains in Tokyo but there were no reports of deals. [ID:nSP486658]
* Late on Wednesday, tyre makers bought Indonesia’s SIR20
grade at 113.50 U.S. cents per pound for February and March
shipment. January changed hands at 114.50 cents.
* U.S. crude futures edged higher just below $80 a
barrel on Thursday, trading in the middle of recent ranges and
taking cues from the dollar and weather in the United States.
[O/R]

Source: Reuters

Comments are closed.