Key Tokyo and Shanghai rubber futures hit record highs on Thursday as speculators bet heavily on strong demand and supply shortages in the future. The key Tokyo Commodity Exchange rubber contract for June delivery settled down 0.4 percent, or 1.7 yen, at 465.7 yen per kg after striking a record high of 470.4 yen.
The most active Shanghai rubber futures contract for May delivery climbed as high as 40,220 yuan ($6,110) per tonne on Thursday, exceeding the previous peak of 39,980 yuan hit the day before. The contract closed up 210 yuan at 40,130 yuan, with volume inching up to 788,972 lots.
Japanese traders have said TOCOM futures could hit 500 yen in the next month as the wintering season begins in producing countries, causing reduced output. Bad weather over the past few months has delayed the stocking of rubber needed during the wintering season, adding to supply concerns, they have said.
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