BANGKOK, April 20 (Reuters) – Tokyo rubber futures finished 4 percent higher on Wednesday, with sentiment boosted by firmness of other commodities, but profit-taking pulled prices down from intra-day highs, dealers said.
The benchmark rubber contract on the Tokyo Commodity Exchange <0#JRU:> for September delivery rose 16.2 yen, or 4 percent, to settle at 425.9 yen ($5.157) per kg. That was down from intra-day highs of 5.2 percent.
The most-active Shanghai rubber contract for September delivery also rose 1,005 yuan to settle at 34,875 yuan ($5,340.409) per tonne.
“Sentiment improved after prices broke above a key resistance of 410 yen and 425 yen respectively,” one dealer said.
TOCOM rubber was expected to rise further on Thursday after prices finished above a key resistance of 425 yen, while dealers said recovering oil prices should provide additional support.
U.S. crude oil futures rose by a dollar to $109.28 per barrel on Wednesday, as a rebound in equities and a weaker dollar offset fears over eroding demand. [O/R]
On the physical front, supply was expected to rise gradually ever the next few weeks, but prices were unlikely to drop sharply. The dry season in producing countries has just ended and rubber trees normally need several weeks before they can produce latex.
Thailand, the world’s biggest rubber producer and exporter, should produce 3.46 million tonnes of rubber this year, down one percent from a January forecast due to heavy floods, the chief of an industry body and exporters said on Tuesday. [ID:nL3E7FJ0QW]
India’s natural rubber production in March rose 7.4 percent on year to 54,400 tonnes, the state-run Rubber Board said in a statement on Tuesday, as record high prices prompted farmers to increase tapping. [ID:nL3E7FJ1R9]
Indonesian tyre grade SIR20 rubber stored in Chinese warehouses was sold at $100 below spot prices quoted in Southeast Asia, the biggest discount this year as Beijing’s monetary tightening curbed demand, dealers said on Tuesday. [ID:nL3E7FJ0W6]

Source: Reuters

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