Tokyo rubber futures tick higher in low volume

Thursday, 29 December 2011 01:13 - - {{hitsCtrl.values.hits}}

BANGKOK (Reuters): Tokyo rubber futures edged higher on Wednesday as speculators bought in anticipation of a drop in supply in coming weeks during the dry season, but gains were limited by thin trading ahead of year-end holidays, dealers said.

The benchmark rubber contract on the Tokyo Commodity Exchange June delivery ticked 0.1 yen higher to settle at 271.6 yen ($3.49) per kg, holding above major support at 270 yen, they said.

Trading was thin, with just 5,810 lots changing hands, compared to more than 10,000 normally.

“TOCOM was supported by rising stocks early in the morning, which encouraged players to buy rubber contracts, but trading volume was too small to push prices up significantly,” one dealer said.

TOCOM prices were expected to rise further in January as the seasonal fall in supply in major producing countries due to the dry season should provide support, dealers said.

($1 = 77.8400 Japanese yen)