SINGAPORE, Jan 4 (Reuters) – The most active rubber contract
on the Tokyo Commodity Exchange jumped to its strongest in more
than a year on Monday as rising oil prices spurred buying on the
first trading day of 2010.
* TOCOM’s rubber contract for June 2010 delivery rose
as high as 285 yen a kg, its highest since September 2008, with a
weaker yen also lifting prices. It settled 8 yen higher at 284
yen.
* Tokyo futures ended up about 103 percent in 2009, but
current levels are still below the peak of around 357 yen hit in
early 2008, when commodities markets rallied on expectations of
strong demand from emerging countries such as China and India.
“Actually, I am a bit surprised to see the market start very
strongly on the first day of trading. We’ve broken 280 yen, so
people may be looking at the 300-yen level now,” said a dealer in
Thailand’s southern city of Hat Yai.
“But I think the market is technically overbought, so it
might undergo a correction.”
* Physical prices gained around 1 percent to track higher
Tokyo futures and there were no reports of deals. [ID:nSGE60303L]
* Oil rose to $80 a barrel amid thin trading volumes
on Monday, partly supported by news that Russia had halted oil
supplies to Belarussian refineries. [O/R]
* The dollar hit a four-month peak against the yen on Monday,
gaining ground on expectations that a string of U.S. economic
data this week may fuel market optimism about the economy. [USD/]

Source: Reuters

Comments are closed.