Benchmark Tokyo rubber futures came off early lows to hit 1-1/2-year highs on Monday as a surge in Shanghai futures and metals helped boost investors' risk appetite, dealers said. "Shanghai futures jumped again as local funds, or speculators, stepped up buying without any fresh fundamental factors," said a Tokyo-based dealer, who declined to be named.
"Tokyo rubber prices followed Shanghai's gain as there are apparently some systematic trades that automatically kick in to reflect Shanghai's move," he said, adding it was difficult to predict how far this rally would continue though he thought it had been overdone.
The Tokyo Commodity Exchange (TOCOM) rubber contract for May delivery finished up 6.4 yen, or 2.7 percent, at 243.3 yen ($2.17) per kg. Earlier in the session, it hit the highest since June 2015 of 243.7 yen. It fell to a low of 232.1 yen on Friday evening, which is considered part of Monday's trade. The most-active rubber contract on the Shanghai futures exchange for May delivery surged 1,035 yuan to finish at 19,390 yuan ($2,808.92) per tonne. It earlier rose to as high as 19,615 yuan, the highest since February 20, 2014. The front-month rubber contract on Singapore's SICOM exchange for December delivery last traded at 176.0 US cents per kg, up 4.4 cent.
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