TOKYO, May 14 (Reuters) – Benchmark Tokyo rubber futuresrose for a third session to a two-week high on Wednesday,supported by higher oil and precious metals prices on escalatingviolence in Ukraine, dealers said.
The benchmark rubber contract on the Tokyo CommodityExchange (TOCOM) for October delivery rose 1.2 yen, or0.6 percent, to settle at 206.1 yen ($2.02) per kg.
The contract climbed earlier to 207.0 yen, the highest sinceMay 2, recovering after settling at 198.3 yen on Friday, but itshook off some gains due to light profit-taking.
“The market was helped by higher commodity prices such asoil and platinum, but selling pressure started weighing on asthe benchmark gets closer to 210 yen,” said Toshitaka Tazawa, ananalyst at Fujitomi Co.
Brent futures held above $109 a barrel on Wednesday near atwo-week high, boosted by expectations of a fall in U.S. oilinventories, and supported by the deteriorating situation inUkraine and the potential for other supplydisruptions.
Platinum and palladium on Wednesday added to sharp gainsmade overnight on worries that increasing labour tensions inmajor producer South Africa could hurt supply.
“I expect the trade will stay within a range between 197.1yen, an intraday low hit last Friday, and 209 yen, an intradayhigh on April 30, for a while unless some fresh and big newscomes and gives the market one direction,” Tazawa said.
Japan’s Nikkei average fell on Wednesday, slippingfrom a 1-1/2-week high on profit-taking after big gains theprevious day.
The most-active rubber contract on the Shanghai futuresexchange for September delivery rose 240 yuan to finishat 14,305 yuan ($2,300) per tonne.
The front-month rubber contract on Singapore’s SICOMexchange for June delivery last traded at 170.40 U.S.cents per kg, up 0.80 cents.
($1 = 102.2250 Japanese Yen)
($1 = 6.2291 Chinese Yuan)
(Reporting by Yuka Obayashi; Editing by Anand Basu)
