Benchmark Tokyo rubber futures rose to a two-week high on Tuesday as concerns that a crop-damaging El Nino weather pattern may crimp output offset selling pressure due to sliding oil prices and the yen's jump to a 17-month high. Tokyo Commodity Exchange (TOCOM) futures, which set the tone for tyre rubber prices in Southeast Asia, rose for a third straight session, also driven by a rebound in physical prices in producing countries in Southeast Asia and firmer Shanghai futures prices, dealers said.
The TOCOM rubber contract for September delivery finished 2.4 yen, or 1.3 percent, higher at 180.8 yen ($1.64) per kg. It earlier hit a high of 181.4 yen, the highest since March 23. The most-active rubber contract on the Shanghai futures exchange for September delivery rose 300 yuan to finish at 11,720 yuan ($1,810.23) per tonne. The front-month rubber contract on Singapore's SICOM exchange for May delivery last traded at 139.6 US cents per kg, up 3.2 cent.