Tokyo rubber hits 300 yen, further gains expected

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

Tokyo rubber futures crept higher on Thursday, finishing at 300 yen despite profit-taking as firm oil prices encouraged buying.

The benchmark rubber contract on the Tokyo Commodity Exchange for May delivery rose 0.8 yen to 300 yen ($2.65) per kg. The next level to watch was this year’s peak of 312.2 yen marked on Nov.7 traders said. The front-month December contract expired on Thursday at 283 yen per kg, up 1.4 yen.

TOCOM rubber benefited from the strength of US crude oil futures, which rose $1.16 to $91.24 on the New York Mercantile Exchange on Wednesday after a larger-than-expected drop of US stocks sparked buying.

TOCOM rubber was expected to rise further on Friday when the new benchmark will be offered, prompting speculative buying.

Source : Business Line