TOKYO, June 23 (Reuters) – Benchmark Tokyo rubber futuresended up 2.6 percent on Monday after hitting a more thantwo-month high ahead of the front-month contract’s expiry onTuesday, helped by firm Shanghai futures and strength in oilprices, dealers said.
The benchmark rubber contract on the Tokyo CommodityExchange (TOCOM) for November delivery rose 5.6 yen tosettle at 218.3 yen ($2.14) per kg.
The contract jumped as high as 3.2 percent to an intradayhigh of 219.5 yen, the highest since April 16, moving away froma near five-year low around 190 yen hit in early June.
Tokyo futures are expected to challenge a key resistancelevel this week on firm oil prices, although high inventory intop consumer China could keep a lid on gains, dealers said onMonday.
“A significant number of deals were made ahead of tomorrow’scontract expiry, driving the market higher,” said Kaname Gokon,general manager of research at brokerage Okato Shoji in Tokyo.
Rubber inventories in warehouses monitored by the ShanghaiFutures Exchange rose for the first time since early February,while stocks in the bonded warehouses in Qingdao remain high andare estimated by dealers at more than 300,000 tonnes.SNR-TOTAL-DW
The most-active rubber contract on the Shanghai futuresexchange for September delivery rose 555 yuan to finishat 15,305 yuan ($2,500) per tonne.
The front-month rubber contract on Singapore’s SICOMexchange for July delivery last traded at 179.00 U.S.cents per kg, up 5.1 cents.($1 = 102.0500 Japanese Yen)($1 = 6.2090 Chinese Yuan Renminbi) (Reporting by Osamu Tsukimori and Lewa Pardomuan in Singapore;Editing by Prateek Chatterjee)