Tokyo rubber futures hit another record high on Thursday on the back of firm oil prices, tight supply and a pause in the yen's rise, dealers said. The benchmark rubber contract on the Tokyo Commodity Exchange for July delivery rose 17.7 yen, or 3.7 percent, to settle at 489.9 yen ($5.99) per kg.
It rose as high as 490.2 yen, the highest ever. "The TOCOM price should rise further after Chinese businessmen get back to work after the Chinese New Year holiday as demand from China should remain strong," one dealers said. China is the world's biggest rubber consumer.
The Shanghai Futures Exchange will be closed until February 8 for the New Year holidays. Its most active rubber contract for May delivery closed at 41,710 yuan per tonne on Tuesday after rising as high as 41,790 yuan, just shy of a record 41,850 yuan hit on Monday. Physical rubber prices were also offered at record high levels on Thursday, with Thai RSS3 quoted at $5.90 per kg.
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