Tokyo rubber futures edged 1 percent higher on Thursday, with a rise in oil prices due to the unrest in Libya helping the market recover some poise after a slump earlier in the week, dealers said. The benchmark rubber contract on the Tokyo Commodity Exchange for August delivery rose 4.4 yen, or 1 percent, to settle at 416.8 yen ($5.04) per kg.
The benchmark, which hit a record high of 535.7 yen in mid-February because of concern about supply in the physical market, fell 9 percent on Tuesday as worries grew about the global economy and oil prices rose; heavy stop-loss selling was seen. The most active Shanghai rubber contract for May delivery fell 180 yuan to settle at 36,190 yuan ($5,518) per tonne. Around 80 percent of farmers in Thailand, the world's biggest rubber producer, have stopped tapping as rubber trees are not producing latex during the dry season, resulting in tight supply. They normally resume tapping by late April.
Comments
Comments are closed for this article.