Tokyo rubber futures jumped 7 percent on Monday, supported by higher oil prices and the prospect of top producing countries taking steps to prop up physical prices, dealers said. The benchmark rubber contract on the Tokyo Commodity Exchange for April delivery rose 17.6 yen to settle at 276.6 yen ($3.6) per kg.
It rose as much as 7 percent to 277.2 yen per kg at one stage, the highest since November 9. The most active Shanghai rubber futures, currently January 2012, hit limit-up at 25,675 yuan ($4,048) a tonne on Monday and closed at that level. "The market was up on news about top producing countries trying to prop up prices, while rising oil prices provided additional support," said a Japanese dealer. The world's top three rubber-producing countries, Thailand, Indonesia and Malaysia, will meet in Bangkok at the end of this week to discuss measures to stabilise rubber prices, a senior Thai official said on Monday.
Brent crude held above $114 on Monday, extending gains from the previous week on hopes of steady demand growth as concerns over Europe's debt crisis eased. Dealers said TOCOM could rise further on Tuesday after it finished above key resistance at 270 yen per kg.
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