Tokyo Futures Edge Lower After Breaking Y500 Mark

Tokyo rubber futures on Monday (February 7) edged off record-highs above 500 yen as profit-taking set in, but concerns about supply shortages limited losses.
The benchmark rubber contract on the Tokyo Commodity Exchange for July delivery lost 0.6 percent, or 3.2 yen, at 499.7 yen ($6.08) per kg as of 0028GMT.
It broke the psychological level of 500 yen and rose to a record 504.0 yen on Friday (February 4).
Supply in the world's top two producing countries, Thailand and Indonesia, is due to fall significantly in February and March when the two countries are in the dry season and rubber trees stop producing latex.
Oil prices fell nearly 2 percent on Friday (February 4) after an unfounded report about a possible announcement from Egypt set off speculation that President Hosni Mubarak could step down shortly, sparking profit-taking from which the market failed to recover.
The dollar held its ground against a basket of major currencies early in Asia on Monday (February 7), with markets growing wary of a reversal in a bearish trend after the greenback bounced off multi-month lows versus the euro late last week.
Indian tyre makers bought natural rubber at a record 240 rupees ($5.26) per kg on Friday (February 4) as farmers squeezed supplies seeking higher prices after a surge in the world markets, a senior official of a dealers body told Reuters.
The offer price for Thai benchmark RSS3 rubber remained at a record high on Friday (February 4).
(Reuters, February 7, 2011)