Rubber climbs to one-month high on China restocking optimism
Tuesday, 29 June 2010
TOKYO, June 28 (Bloomberg): Rubber advanced to a one-month high after data showed stockpiles in China declined to the lowest level in seven years, sparking optimism the biggest buyer may soon replenish inventories.
Futures in Tokyo climbed to 288.6 yen per kilogramme ($3,231 a metric tonne), matching a high reached on May 28. The price gained 3.8 per cent last week, booking the second weekly increase, as rainfall disrupted production in Thailand, the world's biggest producer and exporter.
Natural rubber stockpiles monitored by the Shanghai Futures Exchange dropped 1,670 tonnes to 14,771 tonnes, the bourse said on June 25. It was the lowest level since January 2003, according to the Bloomberg data.
"Chinese buyers may have withheld rubber purchases amid speculation that the raw material prices would drop on a seasonal increase in production," Kazuhiko Saito, an analyst at commodity broker Fujitomi Co in Tokyo, said Monday by phone. "As rubber prices have stayed high," they may step up buying to replenish inventories, he said.
Rubber for December delivery settled at 283.80 yen from its settlement of 278.6 yen on June 25. It has become the most- actively traded contract on the Tokyo Commodity Exchange after its listing on June 25.
November-delivery rubber on the Shanghai Futures Exchange added 1.7 per cent to settle at 22,265 yuan ($3,278) a tonne. Earlier, it rose to 22,420 yuan, the highest level since June 2.
Futures in Tokyo climbed to 288.6 yen per kilogramme ($3,231 a metric tonne), matching a high reached on May 28. The price gained 3.8 per cent last week, booking the second weekly increase, as rainfall disrupted production in Thailand, the world's biggest producer and exporter.
Natural rubber stockpiles monitored by the Shanghai Futures Exchange dropped 1,670 tonnes to 14,771 tonnes, the bourse said on June 25. It was the lowest level since January 2003, according to the Bloomberg data.
"Chinese buyers may have withheld rubber purchases amid speculation that the raw material prices would drop on a seasonal increase in production," Kazuhiko Saito, an analyst at commodity broker Fujitomi Co in Tokyo, said Monday by phone. "As rubber prices have stayed high," they may step up buying to replenish inventories, he said.
Rubber for December delivery settled at 283.80 yen from its settlement of 278.6 yen on June 25. It has become the most- actively traded contract on the Tokyo Commodity Exchange after its listing on June 25.
November-delivery rubber on the Shanghai Futures Exchange added 1.7 per cent to settle at 22,265 yuan ($3,278) a tonne. Earlier, it rose to 22,420 yuan, the highest level since June 2.