Rubber climbs to highest level on supply concerns

At TOCOM rubber futures advanced to 27 month high on speculation that China will increase purchases to stock up rubber, on concern over declining supplies due to floods and heavy rains.

On Tokyo Commodity Exchange, the April 2011 delivery contract, which was listed today, climbed to 343.3 yen per kg - the highest level since 14^th July 2008, before closing at 340.3 yen per kg.

Natural rubber inventories remain at a low level, prompting buyers to step up purchases. Floods in Thailand and China also raised concerns that production may be damaged, reducing to limited supplies to the market.

Natural rubber imports by China jumped 19% from a month earlier to 190,000 tonnes in September as the country’s passenger car sales to dealerships quickened from August on additional incentives for buyers.

Rubber Future Trade at TOCOM as on 26^th October 2010 at 16:10 JST (In yen/kg)  

Month              Open    High     Low     Close

Nov 2010           330.4    332.2    327.8    327.8

Dec 2010          333.0    333.9    328.5    330.6

Jan 2011           336.0    337.3    331.4    334.7

Feb 2011           337.9    339.3    332.9    336.7

Mar 2011           340.0    341.4    335.0    338.9

Apr 2011           342.0    343.3    336.9    340.3

Read lot more in Rubber4U – 1st November 2010 issue