Rubber gains on economic recovery symptoms

Investor confidence in global economic recovery increased, leading to purchases of rubber, after data added to signs of a US economic recovery. On Wednesday, Tokyo Commodity Exchange, rubber advanced to the highest level of ¥316.5 a kg on speculation that prices of competing synthetic products will increase due to increase in oil prices and currently it is trading at ¥315.8 a kg (at 14.15 JST). The contract for delivery in July gained as much as to ¥316.5 a kg, the highest level since 21st January.

Today, RSS3 grade closed at `.174.64 per kg at Bangkok, while Malaysian SMR 20, which Indian tyre makers prefer to import, closed with a positive note at `.164.38 a kg. While RSS4 grade rubber in India closed with a negative note at `.158 a kg on Tuesday.