Benchmark Tokyo rubber futures surged to three-year highs on Thursday, extending gains into a fifth session, as speculators stayed on buying spree, but the market cut some of earlier gains as Shanghai came under pressure in late trade due to profit-taking.
"There have been no fresh fundamental news lately, but both Tokyo and Shanghai rubber markets have been driven by speculative buying," a Tokyo-based dealer who declined to be named.
The Tokyo Commodity Exchange (TOCOM) rubber contract for May delivery finished 9.9 yen, or 3.6 percent, higher at 282.2 yen ($2.40) per kg. It jumped to the highest since Sept. 9, 2013 of 288.8 yen earlier in the session.
The TOCOM futures have gained more than 70 percent since the end of September, tracking a rally in Shanghai.
The most-active rubber contract on the Shanghai futures exchange for May delivery ended down 140 yuan at 20,015 yuan ($2,889.63) per tonne on Thursday, but it was still near the highest since January 2014.
"I think the rally is overdone, but it is hard to predict where the market is headed because Chinese speculators are keep pouring money into Shanghai and Tokyo rubber markets," the dealer said.
The front-month rubber contract on Singapore's SICOM exchange for January delivery last traded at 204.2 U.S. cents per kg, down 10.7 cent.
