Key Tokyo rubber futures rose more than 3 percent on Monday, drawing support from a rally in other commodities markets late last week. The key Tokyo Commodity Exchange rubber contract for September delivery settled at 475.2 yen per kg, up 11.4 yen or 2.5 percent.
The contract rose by as much as 3.9 percent to 481.9 yen at the open, the highest for a benchmark contract since March 3. The lead contract last week posted its biggest weekly increase since the week ending on March 18. "Commodities markets were driven higher today by the rally in silver, where speculative money appears to be targeting, pushing up oil, gold and all other commodities," said Kazuhiko Saito, chief commodities analyst at Fujitomi Co.
Floods in Thailand, the world's largest rubber producer, raised concerns about supply shortages and helped underpin the market, but traders said factories and rubber plants have resumed operations. Traders also said wintering season usually ends around mid-April to alleviate supply shortage concerns. The most active Shanghai rubber contract for September delivery rose 385 yuan to close at 37,065 yuan ($5,672) per tonne on Monday. Volume stood at 501,028 lots.
Comments
Comments are closed for this article.