Tokyo rubber futures bounce

Singapore  (december 17, 2010) : the most active rubber contract on the tokyo commodity exchange bounced from lows on thursday on bargain hunting, but a lack of activity in the physical market could put pressure on prices. tocom's may rubber contract settled 3 yen a kg higher at 396.7 yen, having hit a low of 390.2 yen.
the contract struck a record at 400.1 yen a kg on tuesday on worries about tight supply in main producing countries. but trading slowed to a trickle in the physical sector, even though prices were off their recent record high. "i think the market starts to cool down. we also heard that dealers in singapore have already covered their shorts for the january shipment," said a shipper in indonesia's main growing island of sumatra.
"we've offered some cargoes but there's no interest." the most active may shanghai rubberfutures, which tracked tokyo futures, ended at 35,050 yuan a tonne, up from wednesday's close of 34,735 yuan. indonesia's rubber association said on thursday it saw rubberexports rising 7-8 percent in 2011, in line with its forecast for production growth next year. indonesia is the world's second largest rubber producer.

(Source: http://www.brecorder.com/news/agriculture-and-allied/world/1135042:tokyo-rubber-futures-bounce.html?hl=rubber)