Friday, 17 April 2015 04:51
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Reuters: Benchmark Tokyo rubber futures rose for a second day on Thursday, touching a key 200 yen level, helped by a recovery in oil prices and higher Shanghai futures amid expectations for further government stimulus in top buyer China.
The Tokyo Commodity Exchange (TOCOM) rubber contract for September delivery finished 1.2 yen higher, or 0.6%, at 200.0 yen ($2) per kg, the highest close in a week.
“Stronger oil prices and Shanghai rubber market continued to help TOCOM prices,” said Satoru Yoshida, commodity analyst at Rakuten Securities.
Brent crude hit 2015 highs of above $63 per barrel on Thursday after a rally of more than 5% in the previous session, and analysts said more price rises were likely despite market oversupply.
The most-active rubber contract on the Shanghai futures exchange for September delivery rose 50 yuan to finish at 12,760 yuan ($2,060) per ton.
Investors’ expectations that weak Chinese growth numbers may spark government stimulus measures lent support, dealers said.
“As the TOCOM benchmark managed to pass a 200 yen barrier, it is now expected to head for 210 yen,” Yoshida said.
The front-month rubber contract on Singapore’s SICOM exchange for May delivery last traded at 138.5 US cents per kg, up 0.3 cent.
