Rubber Gains to One-Week High as Crude Oil’s Rally Boosts Appeal

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advanced to the highest level in more than a week after data added to signs of a U.S. recovery, lifting crude oil prices and boosting speculation that prices of competing products will increase.

The contract for delivery in July gained as much as 1.3 percent to 316.5 yen a kilogram ($3,485 a metric ton), the highest level since Jan. 21, and traded at 316.2 yen on the at 10:38 a.m. The rally extended this month’s gains for the most-active contract to 4.5 percent.

Oil in New York traded near a four-month high after data showed home prices in 20 U.S. cities climbed by the most in more than six years. Data due Feb. 1 may show U.S. employers added 160,000 workers in January after a 155,000 December increase, according to the median of 67 forecasts in a Bloomberg survey.

“Investor confidence in recovery increased, leading to purchases of industrial commodities including rubber,” Kazuhiko Saito, an analyst at broker Fujitomi Co. in Tokyo, said by phone today.

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West Texas Intermediate crude for March delivery was at $97.47 a barrel, down 10 cents, in on the New York Mercantile Exchange. Futures closed at $97.57 yesterday, the highest level since Sept. 14.

Federal Reserve policy makers started a two-day meeting yesterday to discuss continuing asset purchases to boost growth. The bank is buying as much as $85 billion of securities each month to stoke the economy and reduce joblessness.

Rubber for May delivery gained 0.6 percent to 26,105 yuan ($4,192) a ton on the Shanghai Futures Exchange. free-on-board lost 0.8 percent to 96.85 baht ($3.25) a kilogram yesterday, according to the Rubber Research Institute.

Source: Bloomberg

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