Tuesday, December 21, 2010

Tokyo rubber futures strike record

Singapore (december 21, 2010) : the most active rubber contract on the tokyo commodity exchange struck record on monday as oil firmed and supply disruptions blamed on heavy rains in producing countries spurred buying from speculators. tocom's may rubbercontract settled 10.2 yen a kg higher at 408.8 yen, within sight of a lifetime high of 410.3 yen hit in early trade on monday. the relative strength index was at around 76.
physical prices tracked tokyo futures higher, with the benchmark thai rss3 grade rising more than 3 percent from friday's offer prices. "tocom may undergo a short-term correction because it's already overbought. but if funds want to bring the market higher again, then we will see it rise," said a dealer in thailand's southern city of hat yai. "the market is already at record high, so it's difficult to predict."
the market views an rsi of 30 or less as oversold and 70 or more as overbought. sixth month tokyo rubber is expected to climb to 450 yen per kg over the next three months, based on its wave pattern, according to wang tao, a reuters market analyst for commodities and energy technicals.