Tokyo rubber at 2-1/2 month high
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Tokyo rubber futures rose to a 2-1/2 month high on Wednesday after bullish technical signals and concerns over supply tightness in Thailand encouraged strong buying by investment funds. ''There are full of bullish factors, which are drawing investment funds into the market,'' said Mr Jun Nishimuta, an analyst at Kanetsu Asset Management in Tokyo. The key Tokyo Commodity Exchange rubber contract for distant October delivery closed at ¥315.5 per kg, up ¥1.6 or 0.5 per cent from Tuesday's close. The benchmark distant contract rose as far as ¥318.5 yen-the highest for a benchmark since Feb. 27. Physical rubber prices were strong, supported by tight supplies as heavy rains in Thailand, the world's top producer, has prevented a return to normal output after the end of the wintering dry season, when production falls. Rubber warehouse inventories on the Shanghai Futures Exchange stood at 39,025 tonnes as of May 8, down 7,085 tonnes or 15 per cent from 46,110 tonnes on April 29.
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Source : Business Line |
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