Tokyo rubber touches 28-year high

Print this page Posted on : 06-28-2008 by recycleinme.com

Tokyo rubber futures jumped more than 2 per cent to touch a fresh 28-year high above ¥356 on Friday, as record high crude oil prices spurred buying. At 0051 GMT, the key Tokyo Commodity Exchange rubber contract for December delivery climbed ¥8.8, or about 2.5 per cent, to ¥356.7 a kg, the highest since March 1980. It then drifted down to around ¥356. US crude was hovering above $139 on Thursday. Rubber prices often benefit from high crude oil prices because investors believe expensive oil will encourage a shift to natural rubber from synthetic rubber, a petroleum product.

Source : Business Line