Tokyo rubber futures hit 15-month highs

Tokyo rubber futures hit 15 month highs on Thursday on the back of firm oil prices but profit-taking trimmed gains, dealers said. The benchmark rubber contract on the Tokyo Commodity Exchange ended up 5.1 yen, or 1.9 percent, at 274.9 yen ($3) per kg, easing from an intraday high of 275.7, its highest level since September 2008.
Oil held well above $76 a barrel on Thursday after having risen over 3 percent the previous day in the biggest one-day percentage gain in about five weeks. US data showed crude oil inventories in the world biggest energy consumer fell more sharply than expected, raising oil prices.
Strong oil prices make alternative synthetic rubber, a petrochemical product, expensive and encourage the use of natural rubber. Dealers said TOCOM sentiment improved after prices breached the 270 yen barrier. However, the rises were capped by profit- taking on recent gains. TOCOM prices were expected to rise further on Friday, largely supported by strong oil prices, they said.