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BANGKOK, April 20 (Reuters) – Tokyo rubber futures rose 3
percent on Tuesday and the spot contract hit a record high on the
back of tight supply and a recovery in oil prices, dealers said.
* The benchmark rubber contract on the Tokyo Commodity
Exchange <0#JRU:> rose 9.6 yen, or 3 percent, to settle at 322.7
yen ($3.49) per kg.
* TOCOM has expanded the daily limit on all rubber contracts
to 40 yen, the biggest permitted daily increase since 1975, a
TOCOM official said.
The 40-yen limit was applied to the spot April contract,
which expires on Friday. The April contract has been rising
sharply, hitting all-time highs for a spot contract due to
technical buy-backs. It settled at 440.0 yen per kg.
* Oil rose above $82 a barrel on Tuesday, after
falling over 2 percent the day before and briefly touching a
three-week low below $81 a barrel as flying restrictions in
Europe ate into jet fuel demand. [O/R]
* Rising oil prices usually make petrochemical-based
synthetic rubber more expensive and encourage tyremakers to shift
to natural rubber.
* TOCOM rubber was expected to rise further because of tight
supply and strong demand in the physical market, dealers said.
($1=92.43 Yen)
Source: Reuters