Rubber advanced to a two-month high as better-than-expected Chinese manufacturing data raised speculation that demand will increase from the largest consumer, and as violence inThailand stoked supply concerns.
The contract for delivery in May on the Tokyo Commodity Exchange rose as much as 2.4 percent to 276.8 yen a kilogram ($2,706 a metric ton), the highest level for a most-active contract since Sept. 27, and was at 275.3 yen at 11:06 a.m. local time. Futures gained 4.5 percent on Nov. 29, the most since May, bringing gains last month to 3.3 percent.
Data showed yesterday Chinese manufacturing growth beat analyst estimates in November, indicating the nation’s economic recovery is sustaining momentum amid government efforts to rein in credit growth. Protesters seeking to oust Thai Prime Minister Yingluck Shinawatra vowed to incite more unrest this week after clashes left three dead in Bangkok at the weekend.
“Futures rallied amid speculation China may step up rubber purchases,” said Kazuhiko Saito, an analyst at broker Fujitomi Co. in Tokyo. “Political turmoil in Thailand also stoked concerns shipments may be disrupted.”
Global rubber demand is poised to recover in 2014 and 2015, driven mainly by China, India and Japan, according to a report from the Economist Intelligence Unit. Demand will rise 4 percent each in 2014 and 2015, it said last week.
The contract for May delivery on the Shanghai Futures Exchange was little changed at 19,670yuan ($3,229) a ton. Thai rubber free-on-board added 0.6 percent to 79.70 baht ($2.47) a kilogram Nov. 29, according to the Rubber Research Institute of Thailand.
Source Bloomberg
