TOCOM snaps three-day rally on profit-taking

Benchmark Tokyo rubber futures rose in early trade but ended lower on Thursday as investors locked in profits after a three-day rally, and as Shanghai futures erased early gains. "Some investors with long positions started booking profits as Shanghai turned lower and industrial metals slid," said Toshitaka Tazawa, analyst, Fujitomi Co. The Tokyo Commodity Exchange (TOCOM) rubber contract for February delivery finished 2.5 yen lower at 231.0 yen per kg, after rising as high as 234.3 yen early in the day. The most-active rubber contract on the Shanghai futures exchange for January delivery fell 30 yuan to finish at 17,490 yuan per tonne, sliding from an earlier high of 17,725 yuan. London copper on Thursday slipped from three-year highs on profit booking ahead of the outcome of a European monetary policy meeting later in the day, however a brighter outlook for global manufacturing growth cushioned losses. "Still, I think the TOCOM is still in a bullish trend as the charts look positive," Tazawa said. The front-month rubber contract on Singapore's SICOM exchange for October delivery last traded at 170.0 U.S. cents per kg, down 0.7 cent.