BANGKOK: Tokyo rubber futures rose 2.4 percent to a 4-month high on Wednesday on rising oil prices and concerns over falling supply, but gains were capped due to some profit-taking, dealers said.
The benchmark rubber contract on the Tokyo Commodity Exchange for July delivery rose 6.8 yen to settle at 325.9 yen ($4.24) per kg.
It rose 2.4 percent to an intra-day high of 326.8 yen, the highest since October 17.
The most-active rubber contract on Shanghai futures for May delivery rose 820 yuan to finish at 29,170 yuan ($4,600) per tonne.
"TOCOM prices were well supported by firm oil prices and fears on seasonal falling supply, but gains were still capped as small investors took profit," one dealer said.
Brent crude futures held above $116 a barrel on Wednesday, as uncertainty over Greece's ability to resolve its debt problems was offset by a sharp drop in US crude inventories.
TOCOM prices were expected to rise further on Thursday as falling supply should still support, while technical sentiment improved after prices finished above a key support level of 320 yen, dealers said.
Thailand, the world's biggest rubber producer and exporter, is in the wintering-dry season, when rubber trees shed their leaves and produce less latex.
Comments
Comments are closed for this article.