TOKYO: TOCOM rubber futures rose on Friday for a second straight session, boosted by a weaker yen and optimism over global demand after data showing faster than expected U.S. economic growth in the third quarter.
The most-active Tokyo Commodity Exchange rubber contract for May delivery was up by 3.0 yen at 258.8 yen per kilogram as of 15.25 JST. The benchmark contract is down about 1 percent for the week.
The U.S. economy grew faster than initially thought in the third quarter as restocking by businesses provided a big boost, but consumer and business spending were revised lower in a sobering reminder of the recoveries underlying weakness.
India’s gross domestic product data for the last quarter is due later on Friday with a poll suggesting July-September growth staying near a three-year low.
Heavy rains disrupted rubber tapping in Thailand and Indonesia, but recent weakness in global benchmark Tokyo futures and rising inventories in main consumer China weighed on tyre grade prices, dealers said on Thursday.
RSS3, the benchmark grade in south east Asia, was offered at $3 a kg for January delivery on Thursday, having been traded at the same level last week. STR20 changed hands at $2.88 to $2.90 a kg last week.
Oil prices rose on Thursday for the first time this week as investors grew more optimistic that U.S. lawmakers will resolve a budget fight and increasing Middle East tensions stoked fear about potential disruptions to oil supplies.
Source: Rubber Country
