Key Tokyo rubber futures rose to a three-week high on Wednesday, supported by other commodities markets which rallied the day before on views a second-quarter slump was overdone, but trading was expected to be rangebound given a lack of fresh incentives. The key Tokyo Commodity Exchange rubber contract for December delivery rose as much as 2.5 percent to 385.7 yen per kg, the highest for any benchmark since June 16, before settling at 383.9 yen per kg, up 7.5 yen or 2 percent.
The most active Shanghai rubber contract for January delivery closed at 34,065 yuan ($5,266.449) per tonne on Wednesday, up 300 yuan from Tuesday's close. Volume fell to 576,604 lots from 607,720 lots the day before. "Rubber rose in tandem with firmer oil as it has a close correlation, particularly with Brent," said Makiko Tsugata, an analyst at Market Risk Advisory Co, a research and consulting firm in Tokyo.