Tokyo Futures Dip From Record Highs

Tokyo rubber futures fell 1 percent on Tuesday (January 25) after scaling a record high for the fourth consecutive session the previous day, but concerns over supply shortages during the winter in producing countries firmly supported the downside.
The most active rubber contract on the Tokyo Commodity Exchange for June delivery slipped 4.8 yen, or 1 percent, to 477.3 yen ($5.78) per kg as of 0048 GMT. The benchmark contract hit a historic high of 484.9 yen on Monday (January 24).
The most active rubber futures contract on the Shanghai Exchange on Monday (January 24) also hit a record peak of 41,200 yuan ($6,258) per tonne, before settling at 40,465 yuan.
TOCOM rubber prices are expected to rise further to test resistance at 490 yen per kg on the back of limited supply while demand remained strong, dealers said.
Oil fell more than 1 percent on Monday (January 24) as ample U.S. inventories were seen on the rise and after Saudi Arabia's oil minister expressed concerns about the influence of speculators on prices.
The euro held near a two-month peak early in Asia on Tuesday (January 25), with $1.37 firmly in its sight as the market showed only the barest signs of fatigue after a 6 percent rally in the past two weeks.
Thailand's benchmark physical rubber price, RSS3, was also offered at a record high on Monday (January 24) of $5.82 per kg.