Tokyo rubber futures hit new high

Tokyo rubber futures jumped 2 percent to hit another record high on Wednesday, supported by firm oil prices and strong demand on the fundamental front, dealers said. The benchmark rubber contract on the Tokyo Commodity Exchange for June delivery rose 9.2 yen, or 2 percent, to settle at 449.1 yen ($5.39) per kg. It rose as high as 450.2 yen, the highest ever.
"TOCOM prices may rise further as demand remains strong. But the rise shouldn't be very fast as players were cautious about high prices and it seems like the market is overbought," one dealer said. Asian physical supply was expected to remain thin in February and March as Thailand and Indonesia, the world's top two producers, are in the dry season, when rubber trees produce less latex, traders said.