ERJ staff report (LMH)
Bangkok - Asian rubber settled mixed Tuesday as firm fundamentals support, but a pullback in the broader market after strong gains last week weighed on some rubber bourses, reports the International Rubber Consortium (IRCo) 8 Jan.
Benchmark June natural rubber futures on the Tokyo Commodity Exchange settled Yen 1.9 higher at Yen 305.6 a kilogram as major producing regions experience heavy rain, keeping supply tight.
Tocom rubber is vulnerable to currency moves and further gains may be limited as investors liquidate their longs to take profit at the Y306-Y309/kg level, Kaname Gokon, deputy general manager at Tokyo-based brokerage Okato Shoji is reported as saying.
June Tocom rubber closed Y2.3 higher at Y307.9/kg in the night session, which is considered part of the next trading day.
Benchmark May natural rubber on the Shanghai Futures Exchange settled 0.6% lower.
Asian physical rubber prices were also mixed, taking cues from regional rubber futures. Although the world's largest importer China was in the market bidding ahead of the Lunar New Year break in February, its bids were often too low for trades, IRCo reported an exporter in Thailand as saying.
Natural rubber prices may hit $4/kg in Q1 2013 due to firm fundamentals, said IRCo chief secretary Yium Tavarolit in his weekly report, citing seasonal factors and an improved global macroeconomic outlook.
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Press release from IRCo.