Rise in Crude Oil Boosts Rubber to 15-Month High
Rubber climbed to a 15-month high after crude oil rose on optimism that the US economic recovery is gathering momentum, increasing its competitiveness against rival synthetic products that are made from petroleum.
Futures in Tokyo advanced as much as 1.5 percent to the highest level since September 2008. Oil rallied for a third day on Thursday as initial US jobless claims fell more than estimated and orders for durable goods excluding transportation equipment topped economist forecasts.
“Rising crude oil prices and a weakening yen continue to drive rubber prices higher,” Rewat Yenchai, an analyst at Agrow Enterprise, said by phone from Bangkok on Friday.
Natural rubber for June delivery climbed by as much as 4 yen to 278.9 yen ($3.05 per kilogram on the Tokyo Commodity Exchange before settling at 276.3 yen. Prices gained 2.5 percent this week, extending last week’s 9.2 percent increase.
Bloomberg
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