Tokyo rubber futures hit record high

Tokyo rubber futures jumped 3 percent to another record high on Tuesday, supported by a better global economic outlook and limited supply from producing countries, dealers said. The benchmark rubber contract on the Tokyo Commodity Exchange for June delivery rose 11.8 yen to settle at 426.3 yen ($5.21) per kg. It went as high as 426.6 yen, the highest ever.
The dollar inched down after rising in Asia early on Tuesday, with the yen on the backfoot, after better manufacturing and construction data suggested the US economy would accelerate in 2011. "There were some profit-hunters that sold contracts and capped the rise in TOCOM prices. However, price were expected to remain high over the next couple of weeks as supply was still limited," one dealer said. Thailand and Malaysia have been hit by unseasonably heavy rain while Indonesia is still in a longer-than-expected dry season, traders said.