TOKYO – Japanese rubber futures rose for a third day on Friday as higher physical prices in Southeast Asia boosted sentiment and encouraged new buying, while a firmer market in Shanghai also provided support.
The Osaka Exchange’s rubber contract for June delivery ended 2.1 yen, or 0.9% higher, at 246.5 yen (US$2.2) a kg, near Thursday’s high of 247.4 yen, the highest since December 2nd.
For the week, the benchmark posted its third consecutive weekly gain, gaining 2.1%.
“There was no new fundamental news, but higher physical prices encouraged buying in the futures markets,” said a Tokyo-based trader, adding that the Shanghai market, which broke above the 15,000 yuan upper resistance level, also attracted buying interest strengthened.
The US dollar’s weakness, which helped prop up global commodity prices, also offers psychological support, he said.
The rubber contract on the Shanghai Futures Exchange for delivery in May rose 75 yuan to 15,185 yuan ($2,392) a tonne after hovering near a six-week high the previous day.