Tokyo rubber futures extended gains on Thursday and rallied to their highest in more than two months at above 300 yen on gains in equities and oil, tight supplies in Southeast Asia as well as a plan by Thailand to shore up domestic prices. Thailand's National Rubber Committee will seek cabinet approval next week for 15 billion baht ($472 million) to buy rubber after the price of USS3, the rubber sheet sold to factories by farmers, halved since last February.
The most active rubber contract on the Tokyo Commodity Exchange, currently June 2012, hit a high of 305.5 yen a kg, its strongest since early November, before ending 6.6 yen higher at 305.1 yen a kg. "The prices are going up on anticipation that this coming Tuesday, the (Thai cabinet) meeting will carry some positive outcome," said Ker Chung Yang, analyst at Phillip Futures in Singapore. "Also we see the crude oil price going up. It's something that is supporting prices at the moment." TOCOM's most active contract struck a lifetime high of 535.7 yen a kg last February.
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