Tokyo rubber at 9-week high
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Tokyo rubber futures rose by about 3 per cent and closed at a nine-week peak near ¥310 on Wednesday, boosted by crude oil's climb to an all-time high. The key Tokyo Commodity Exchange rubber contract for October delivery rose to an intra-day peak of ¥308.9 per kg, up ¥9.6 or 3.2 per cent. It was the highest level since March 6. It finished at ¥308.1, up ¥8.8.
Using stocks
Some traders said while demand for rubber has not fallen, some potential buyers are using stocks rather than buying more rubber. Rubber prices often benefit from high crude oil prices because investors believe the price of oil will encourage a shift to natural rubber from synthetic rubber, a petroleum product. Supply tightness in the region due to unseasonal rain that has disrupted tapping is boosting physical rubber prices. A regional trader said prices could steady once the skies clear.
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Source : Business Line |
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