This entry was posted on Wednesday, June 15th, 2011 at 4:27 pm and is filed under Rubber News. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.
BANGKOK, June 15 (Reuters) – Tokyo rubber futures rose on Wednesday, supported by the prospect of good demand from China, dealers said, after seeing industrial output data, but gains were limited by weaker oil prices.
The benchmark rubber contract on the Tokyo Commodity Exchange <0#JRU:> for November delivery rose 6.4 yen to settle at 386.2 yen ($4.801) per kg.
The most active Shanghai rubber contract for September delivery rose 730 yuan to finish at 33,500 yuan ($5,170) per tonne.
“Rubber rebounded today on the back of bright Chinese industrial data, but gains were still capped by volatile oil prices,” one dealer said.
Chinese industrial output in May beat market expectations with a 13.3 percent rise from a year before, compared with April’s 13.4 percent expansion, according to the National Bureau of Statistics (NBS). [ID:nB9E7GG00R]
Oil fell on Wednesday after euro zone ministers failed to reach agreement on a second bailout for Greece, while rising gasoline stockpiles in top consumer the United States signalled fuel demand was stalling. [O/R]
Dealers said TOCOM sentiment had improved and they expected prices to rise further on Thursday as limited supply should provide support.
However, prices were likely to be capped by profit-taking.
($1 = 80.440 Japanese Yen)
($1 = 6.480 Chinese Renminbi)
Source: Reuters