TOCOM extends gains on firm oil prices
Benchmark Tokyo rubber futures extended gains into a second session on Monday, getting support from firm oil prices amid growing expectations that an OPEC-led supply cut may be extended into next year.
Tokyo Commodity Exchange (TOCOM) futures, which set the tone for tyre rubber prices in Southeast Asia, were also driven higher on the back of arbitrage opportunities between TOCOM and Shanghai futures, brokers said.
"There is also some speculation that supplies in Thailand may tighten in the future," said a Tokyo-based broker.The Tokyo Commodity Exchange rubber contract for October delivery finished 2.8 yen, or 1.2%, higher at 227.7 yen (US$2.04) per kg after hitting their highest since May 17 at 233 yen earlier.
The most-active rubber contract on the Shanghai Futures Exchange for September delivery rose 180 yuan to finish at 13,850 yuan (US$2,010) per tonne, after touching a near three-week high of 14,290 yuan earlier.
The front-month rubber contract on Singapore's SICOM exchange for June delivery last traded at 155 US cents per kg, up 1.7 US cents.
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