Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

Rubber Settles at Highest Level Since September as Crude Climbs

Feb. 8 (Bloomberg) -- 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.

To contact the reporters on this story: Aya Takada in Tokyo at atakada2@bloomberg.net; Supunnabul Suwannakij in Bangkok at ssuwannakij@bloomberg.net

To contact the editor responsible for this story: Richard Dobson at rdobson4@bloomberg.net

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.