Tokyo rubber futures hit two-week high

Tokyo rubber futures jumped to a two-week high on Tuesday after a recovery in physical prices due largely to tight supply in producing countries spurred speculative buying in futures, dealers said. The benchmark rubber contract on the Tokyo Commodity Exchange for August delivery rose 25.3 yen, or 6.1 percent, from Friday's close, to settle at 433.9 yen ($5.38) per kg.
It touched 434.5 yen, the highest since March 8. The Tokyo rubber futures market was closed on Monday for a public holiday. The most active Shanghai rubber futures for May delivery rose 280 yuan to settle at 35,900 yuan ($5,466) per tonne. The price of benchmark smoked rubber sheet jumped to $5.60 per kg on Tuesday, up from last week's $5.00, even though the Thai government said it saw no need to intervene in the market right now as prices were supported by seasonal tight supply, traders said. TOCOM prices were expected to rise further after the benchmark finished above key resistance at 430 yen per kg; the next technical level is 450 yen, dealers said.