This entry was posted on Wednesday, September 19th, 2012 at 6:27 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.
BANGKOK, Sept 19 (Reuters) – Tokyo rubber futures climbed to
a three-and-a-half month high on Wednesday, buoyed by hopes that
demand would rise after the Bank of Japan eased monetary policy,
dealers said.
The benchmark rubber contract on the Tokyo Commodity
Exchange for February delivery was up 3.8 yen to settle
at 260.0 yen ($3.31) per kg.
It rose to an intra-day high of 263.6 yen, the highest since
June 1, before climbing down as some profit taking set in.
“There was some speculative buying after the BOJ relaxed
monetary policy as market players expected demand to rise. But,
there were small players who took profit and that limited the
gains,” a Bangkok-based trader said.
The Bank of Japan eased monetary policy on Wednesday by
boosting its asset purchase programme, as prospects of a
near-term recovery in the world’s third largest economy faded
due to weakening exports and fall-out from a territorial dispute
with China. [ID:nL4E8KJ05L]
Dealers said they expected TOCOM prices to rise further on
Thursday as technical sentiment improved after prices finished
at a major support of 260 yen level.
The most-active rubber contract on Shanghai futures exchange
for January delivery rose 230 yuan to finish at 24,535
yuan ($3,900) per tonne.
The front-month October rubber contract on Singapore’s SICOM
exchange was last traded at $2.89 per kg, up 0.2 cent.
($1 = 78.6100 Japanese yen)
($1 = 6.3189 Chinese yuan)
Source: Reuters