Key TOCOM rubber futures
briefly touched a two-month high of 300.2 yen on Wednesday
before settling up 2.8 percent on chances of market intervention
by the Thai government to boost prices, but rising inventories
may cap gains, a trader said.
The key Tokyo Commodity Exchange rubber contract for June
delivery <0#2JRU:> held steady above its 25-day moving average
and settled at 298.5 yen, up 7.5 yen. It broke the psychological
level of 300 yen for the first time since November.
“Sentiment is brighter, with support from the Thai
government’s plan to intervene in the market, but investors may
find it hard to test a further rise, given weak consumption and
higher levels of inventories in Japan and China,” said Naoki
Asami, chief broker at trading house Kanetsu.
Thailand’s National Rubber Committee will seek cabinet
approval next week for 15 billion baht ($472 million) to buy
rubber to support prices, Deputy Prime Minister Kittirat Na
Ranong said on Tuesday. [ID:nL3E8CH1BK]
Japan’s crude rubber inventories rose 1,141 tonnes in
10 days to a two-month high of 13,439 tonnes as of Dec. 31,
according to the Rubber Trade Association of Japan.
[ID:nL3E8CD1FZ]
Tyre grades changed hands at their highest prices in two
months as buyers replenished stocks, supply tightened in parts
of Asia and Tokyo futures rallied on expectations the Thai
cabinet would approve a plan to buy rubber from farmers, dealers
said on Wednesday. [ID:nL3E8CI2K9]
Brent crude rose above $112 on Wednesday as the dollar
weakened and a slew of positive economic indicators, from China
to the United States, eased demand concerns triggered by the
debt crisis in Europe. [O/R]

Source: Reuters

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