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TOKYO, Aug 28 (Reuters) – Tokyo rubber futures hit a two-week high on Friday as fund buying continued, while tightening raw material supplies propped up physical rubber prices.
* The key Tokyo Commodity Exchange rubber contract for February delivery <0#JRU:> settled at 210.9 yen, up 4.1 yen or 2 percent from the previous close.
* It earlier rose as high as 212.4 yen, up 2.7 percent, nearing this month’s high of 214 yen marked on Aug. 14, the highest for any benchmark since October.
* “The rubber market has been showing resilience even when other markets fall in correction from time to time. That is probably because its fundamentals are relatively strong,” said a manager at a Japanese trading firm.
“Less and less people are bold enough to sell in a market which looks to remain bullish for the time being.”
* TOCOM’s benchmark rose 8.6 percent this week, reversing a 6.8 percent fall the previous week.
* In the physical market, Thailand’s RSS3 tyre grade was quoted at $2.18 per kg on Friday, up 6 percent from a week earlier and up 15 percent from a month ago.
* Supplies in Thailand, the world’s top producer, stayed limited as the weather in some producing areas was mostly wet this week, keeping farmers from tapping. In addition, demand from major tyre makers has been consistently strong on price dips, traders said.
* Indonesia’s SIR20 was more competitive than any Thai grade and was sold to tyre makers at around $1.91 per kg late on Thursday. [ID:nSP434555]
* U.S. crude futures extended gains towards $73 a barrel on Friday, after snapping a two-day fall a day ago from 10-month highs, boosted by better-than-expected GDP and jobs data in the United States that signal the economic recovery is on track. [O/R]
* The dollar inched up against the yen on Friday, which traders said was helped by buying from Japanese and European banks, after hitting its lowest in a month the previous day. [USD/]
* The dollar stood at 93.91 yen, compared to late New York levels of 93.48/54 yen. A weaker yen inflates yen-based TOCOM futures prices.
* Rubber inventories in warehouses monitored by the Shanghai Futures Exchange rose 10 percent in the week ended on Thursday, the exchange said. [ID:nBJD002971] It was the ninth straight week of weekly gains.
Source: Reuters