BANGKOK: Tokyo rubber futures rose 2.3 percent to a three-month high on Wednesday as concern about the US debt stalemate encouraged investors and funds to take speculative buying in commodity futures, dealers said.
The benchmark rubber contract on the Tokyo Commodity Exchange (TOCOM) for January 2012 delivery rose 8.4 yen to settle at 396.0 yen ($5.1) per kg. It rose 2.3 percent to a high of 396.0 yen, the highest since April 27.
Dealers said TOCOM was expected to rise further on Thursday to test resistance at 400 yen. However, the most active rubber contract on the Shanghai futures exchange for January delivery dropped 60 yuan to finish at 36,280 yuan ($5,632) per tonne.
"Rubber rose in line with other commodities. There was speculative buying in both grains and metal futures. Investment funds also continued to buy rubber as well," said a Japanese dealer.
Commodities rose broadly on Tuesday, with copper and corn outperforming the pack, as fear of a US credit default sank the dollar and investors sought assets that could preserve value.
Oil slipped on Wednesday, staying at $99.13 a barrel by 0713 GMT as worries about US debt dominated the markets.
The dollar fell to a fresh record low versus the Swiss franc, with the US currency under broad pressure on worries over the prospect of a US debt default, pushing investors towards the perceived safe haven of the franc.
Copyright Reuters, 2011
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