Rubber trades near 8-month high
- Published: 8/01/2013 at 01:21 PM
- Online news:
Rubber traded near an eight-month high on optimism that China, the biggest buyer, will increase inventories ahead of holidays and as crude oil prices climbed.
Rubber for delivery in June gained as much as 0.9% to 306.4 yen a kilogramme (US$3,497 a metric tonne) on the Tokyo Commodity Exchange before trading little changed at 304 yen at 12.46pm. The contract rose to 313.7 yen on Tuesday, the highest level since May 7.
Oil traded near a four-month high in New York before a government report that may show refinery utilisation rose and stockpiles increased in the United States Natural-rubber inventories gained 1,770 tonnes to 97,697 tonnes, the highest since March 2010, the Shanghai Futures Exchange said on Jan 4.
"Rising crude oil prices are supportive," Chaiwat Muenmee, an analyst at DS Futures Co, said by phone from Bangkok. Optimism that China will build up stocks ahead of Chinese New Year also gave a boost, he added.
The upside was limited after the Japanese currency headed for the biggest two-day gain in five weeks, extending a rally from its 2 1/2 year low, reducing an appeal of yen-denominated contracts, said Naohiro Niimura, a partner at research company Market Risk Advisory in Tokyo.
Rubber for delivery in May gained 0.2% to 26,135 yuan ($4,198) a ton onne the Shanghai Futures Exchange. Thai rubber free-on-board added 0.2% to 102.35 baht ($3.36) a kilogramme on Tuesday, according to the Rubber Research Institute of Thailand.
About the author
- Writer: Bloomberg News
Position: News agency