Markets

Rubber at 5-week high

(China Daily)
Updated: 2010-08-04 13:37

BANGKOK - Rubber climbed to a five-week high as declining inventories in Japan and rising crude oil prices enhanced the appeal of the commodity used to make tires.

Futures in Tokyo advanced 2.3 percent to the highest level since June 28. The price extended last month's 1.3 percent gain, the first increase in four months.

Related readings:  Rubber at 2-week high - July 28  Rubber hits 6-week low - July 23

"Warehouse stocks in Japan are still very low, providing speculation buyers may soon build up inventories," Kazunori Kokubo, general manager at commodity broker Yutaka Shoji Co, said on Tuesday from Tokyo.

"That's also why the nearby contract can't come down," he added.

Rubber stockpiles monitored by the Tokyo Commodity Exchange fell 22 percent to 1,042 metric tons as of July 20, data from the bourse showed.

Bloomberg News