Benchmark Tokyo rubber futures rose 0.8 percent on Thursday, supported by overall strength in commodities after minutes from the latest US Federal Reserve meeting fuelled hopes that another round of quantitative easing might be launched swiftly. The benchmark rubber contract on the Tokyo Commodity Exchange (TOCOM) for January delivery rose 1.7 yen to settle at 220.3 yen ($2.78) per kg.
The contract traded in a relatively narrow range. The most active rubber contract on the Shanghai futures exchange for January delivery rose 390 yuan to finish at 21,880 yuan ($3,400) per tonne. The front-month rubber contract on Singapore's SICOM exchange for September delivery last traded at 253.50 US cents per kg, up 2.3 cents. "Absent market-moving factors, rubber tends to move in line with oil and other commodities," a Tokyo-based trade source said. "Short-covering on the back of the overall strength of commodities also played a key role."
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