Rubber Jumps Most in Two Months as Oil’s Rally Boosts AppealAya Takada
Rubber jumped the most in two months after oil in New York surged to a 15-month high, boosting the appeal of the commodity as an alternative to synthetic products used in tires.
Rubber for delivery in December on the Tokyo Commodity Exchange advanced 4.4 percent, the biggest gain for a most-active contract since May 10, to settle at 245.1 yen a kilogram ($2,475 a metric ton).
West Texas Intermediate oil rallied 12 percent in the last three weeks, supported by U.S. crude stockpiles that tumbled for a second week. Stocks and commodities rose after Federal Reserve Chairman Ben S. Bernanke said the world’s biggest economy will continue to need stimulus for the foreseeable future.
“Rubber chased gains in oil amid speculation that the U.S. will maintain monetary stimulus,” Kazuhiko Saito, an analyst at broker Fujitomi Co. in Tokyo, said by phone today.
Rubber for January delivery on the Shanghai Futures Exchange rose 4.2 percent to close at 18,000 yuan ($2,934) a ton.
China may soften its stance on monetary policy after Premier Li Keqiang said the nation’s economic growth and employment must stay above a certain floor, according to Nomura International (HK) Ltd.
Natural rubber imports by China, the world’s largest consumer, were 130,000 tons in June, the customs agency said yesterday. That compares with 177,400 tons in May and 163,317 tons a year ago, according to data compiled by Bloomberg.
Thai rubber free-on-board fell 1.1 percent to 79.85 baht ($2.57) a kilogram today, according to the Rubber Research Institute of Thailand.