Tokyo rubber futures jump 4.5 percent

Tokyo rubber futures jumped 4.5 percent on Wednesday on the back of short-covering, with contracts snapped up on supply concerns after three Asian rubber producers sought to prevent further price falls, dealers said. The benchmark rubber contract on the Tokyo Commodity Exchange for August delivery rose 16 yen, or 4.5 percent from Tuesday's close, to settle at 369.0 yen ($4.56) per kg.
The most active Shanghai rubber futures contract for May delivery also rose 1,090 yuan to settle at 34,245 yuan ($5,211) per tonne. The world's top rubber producing countries, Thailand, Indonesia and Malaysia, will hold an urgent meeting this week to find ways to support prices that have collapsed this month, a senior industry official said on Tuesday. Dealers said TOCOM rubber was likely to rise further on Thursday on supply concerns as players feared the top three producers could cut exports, as they did in 2009.