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25 June 2012: Tocom Rubber Settles Higher; Downside Risk Likely

Tocom rubber futures settle 2.4% higher after gaining as much as 3.7% intraday; Kaname Gokon, deputy general manager at Tokyo-based brokerage Okato Shoji, says gains were due to short covering, but profit-taking set in as Tocom is motivated by macroeconomic factors, so investors started setting up new shorts; he adds any upside is likely limited to Y240/kg; “Tocom will likely retest the Y220/kg support this week as overall conditions are not good for prices,” he says. Benchmark November rubber settles Y5.6 higher at Y237.3/kg, after trading in the Y227.8-Y240.2/kg range.

Source: Dow Jones

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This entry was posted on Monday, June 25th, 2012 at 5:09 pm and is filed under Rubber News. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.

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