Tokyo rubber futures near 6-week high

Print this page Posted on : 12-21-2007 by recycleinme.com

Tokyo rubber futures rose more than 1 per cent to their highest in almost six weeks on Wednesday as oil prices stayed firm and the yen remained weak, but resistance at 300 yen capped the rise.

The benchmark rubber contract on the Tokyo Commodity Exchange for May delivery rose 5.0 yen, or 1.7 per cent, to 299.2 yen ($2.64) per kg. It rose as high as 299.5 yen, the highest for any benchmark since Nov. 12, before profit taking set in.

TOCOM sentiment was lifted by firm energy prices, which encourage the use of natural rubber instead of synthetic rubber, a petrochemical product, dealers said.

In the physical market, rubber prices were quoted mostly higher, backed by TOCOM’s rise and limited supply in producing countries.

Source : Business Line