Tokyo rubber futures higher

Tokyo (december 09, 2010) : key tokyo rubber futures edged higher on wednesday on supply concerns and as a weaker yen revived appetite from investors after they took profits from prices hovering near 30-year highs. the key tokyo commodity exchange rubbercontract for may delivery settled at 377.2 yen per kg, up 1 yen or 0.3 percent. the most active shanghai rubber futures for may delivery fell 1,025 yuan to close at 32,200 yuan ($4,845) per tonne. volume picked up to 896,800 lots from 683,698 lots on tuesday.
traders have said that tocom sentiment was hurt by the recent weakness in shanghairubber futures on concerns over measures from china to contain inflation. traders have also said worries about supply shortages kept support firm, although that alone was unlikely to push tocom futures to fresh peaks.
shanghai may rubber futures hit a record high on november 11 of 38,920 yuan, pulling benchmark tocom rubber futures to a 30-year peak of 383 yen the same day, just a tad below a record high of 388.9 yen hit in february 1980. shanghai futures then plunged to a low just below 30,000 yuan on november 30.