Thursday, February 24, 2011

Tokyo futures hit 3-week low but find support

BANGKOK, Feb 24 - Tokyo rubber futures fell 1.7 percent on Thursday as investors continued to take profits from recent record highs, but tight supply and strong oil prices should provide support, dealers said.

* The benchmark rubber contract on the Tokyo Commodity Exchange <0#JRU:> for August delivery fell 8.5 yen to settle at 478.8 yen per kg. It fell as low as 469.3 yen, the lowest since Feb. 2.

* "There was another round of profit-taking as players as well as investment funds thought that the market was overbought," one dealer said.

* But dealers said rubber prices could recover on Friday after prices found strong support at 475 yen per kg, and tight supply in producing countries should provide fundamental support.

* Oil prices hit a fresh 2-1/2-year peak on Thursday on concern the bloody unrest that has cut more than a quarter of OPEC member Libya's crude output could spread to other major producers, including top exporter Saudi Arabia.

(Source: http://ph.news.yahoo.com/rtrs/20110224/tap-markets-asia-rubber-c3bb44c.html)

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