Rubber climbed to the highest close in more than four months as a rally in oil boosted the appeal of the commodity as an alternative to synthetic products, and on increased optimism that Greece is set to secure a second bailout.
The July-delivery contract advanced 2.1 percent to end at 325.9 yen a kilogram ($4,228 a metric ton), the highest settlement since Sept. 22, on the Tokyo Commodity Exchange. Futures have surged 24 percent this year on the demand outlook.
The euro traded near an eight-week high against the dollar after a Greek official said his government and international creditors are working on the final draft on measures needed to obtain the second rescue. Prime Minister Lucas Papademos is scheduled to meet the heads of three political parties today. A weaker dollar boosted oil and metals.
“Optimism about the Greek bailout increased investor appetite for riskier assets,” Kazuhiko Saito, an analyst at broker Fujitomi Co. in Tokyo, said today by phone. “Rubber advanced in tandem with oil and other industrial commodities.”
Futures also gained on expectations that supply from Thailand, the largest producer and exporter, will decline amid the low-production season, he said. During the period, known as wintering, trees shed leaves and latex output slows.
The Thai cash price gained 0.8 percent to 127.80 baht ($4.15) per kilogram today, also boosted by the Thai government’s price-support policy, the Rubber Research Institute of Thailand said on its website.
May-delivery rubber in Shanghai rose 2.9 percent to end at 29,170 yuan ($4,634) a ton, the highest close since Sept. 22.