BANGKOK, Aug 11 (Reuters) – Tokyo rubber future ended higher on Thursday as players took speculative buying positions after recent sharp falls, but gains were limited by falling oil prices and worries about the global economic outlook, dealers said.
It rose to an intra-day high of 368.0 yen before profit-taking set in.
The most active rubber contract on the Shanghai commodity exchange for January delivery rose 1,140 yuan to finish at 34,140 yuan ($5,319) per tonne.
“TOCOM prices had fallen to levels that were quite cheap, encouraging players to take speculative buying positions, but there are several negative factors that prevent prices from rising further, including weaker oil prices,” one dealer said.
Brent slipped on Thursday, reversing the previous session’s gain of 4 percent, due to worries over demand as the European debt crisis spilled over to France.
On Tuesday, TOCOM rubber fell as much as 6 percent to a one-month low on a broad sell-off due to fears of a global economic recession. Prices rebounded slightly on Wednesday.
“With speculative buying, the prospect of rising supply and volatile oil prices, I expected TOCOM prices to be trapped in a narrow range for a few days,” said another trader at Thailand’s Hat Yai rubber centre.
Dealers expected TOCOM to find strong support at 360 yen per kg, while resistance was seen at 370 yen.
($1 = 76.500 Japanese Yen)
($1 = 6.418 Chinese Yuan)
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