Tokyo rubber futures rose to a two-week high on Thursday on the back of firm oil prices and hopes that Greece was closer to securing international aid, but rising supply capped gains, dealers said. The benchmark rubber contract on the Tokyo Commodity Exchange for December delivery rose 7.2 yen to settle at 365.0 yen ($4,520) per kg.
It rose to an intra-day high of 366.4 yen, the highest since June 22. The most-active rubber contract on Shanghai futures exchange for September delivery rose 805 yuan to finish at 31,865 yuan ($4,930.153) per tonne. "I think TOCOM prices should remain strong after prices finished at major support level of 365 yen," said a Tokyo-based dealer. Brent held above $112 on Thursday, buoyed by tighter US oil stocks and a weaker dollar after an initial favourable vote on austerity measures by Greece's parliament. However, physical rubber prices were unlikely to fall below $4.00 per kg, according to the Thai Rubber Association.