Tokyo Futures Jump 7 Pct On Supply Worries

Tokyo rubber jumped 7 percent on Friday (Mar 18) on supply worries after Thailand, the world's biggest producer, halted exports in a bid to push up prices, while firmer oil provided additional support, dealers said.


FUNDAMENTALS


The benchmark rubber contract on the Tokyo Commodity Exchange for August delivery rose 28 yen, or 7 percent, to a one-week high of 424.9 yen ($5.26) per kg.


The most active Shanghai rubber contract for May delivery rose 1,265 yuan to 35,600 yuan ($5,418) per tonnes by 0102 GMT.


"TOCOM rubber is rebounding as players keep buying after Thailand said it would halt exports," said a Tokyo-based dealer.


ICE Brent crude rose more than a dollar on Friday (Mar 18) on fears of further escalation of geopolitical tension in the Middle East and North Africa.


(Reuters, March 18, 2011)