BANGKOK, June 20 (Reuters) – Tokyo rubber futures edged higher on Wednesday on speculative buying after prices found a strong support level of 250 yen per kg, but gains were limited as players were still cautious ahead of the Federal Reserve’s decision on U.S. rates, dealers said.
The benchmark rubber contract on the Tokyo Commodity Exchange for November delivery rose 0.7 yen to settle at 252.2 yen ($3.19) per kg.
The most active rubber contract on Shanghai futures exchange for September delivery rose 305 yuan to finish at 23,350 yuan ($3,700) per tonne.
The front-month July rubber contract on Singapore’s SICOM exchange was last traded at 295.0 U.S. cents per kg, up 0.5 cent.
“It seemed like prices found a strong support level at 250 yen, but there was no big buying force to push prices much higher as players were waiting for Fed’ decision,” said a Bangkok-based trader.
Traders said players were still concerned that a fragile global economy and uncertainty of the U.S. recovery could make the Federal Reserve feel compelled on Wednesday to launch a new round of monetary stimulus.
Dealers said TOCOM rubber prices were likely to be trapped in a narrow range of 250-260 yen, with limited supply lending support, while the Euro zone debt crisis still weighed.
($1 = 79.0300 Japanese yen)
($1 = 6.3545 Chinese yuan)
(Reporting by Apornrath Phoonphongphiphat; Editing by Gopakumar Warrier)
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