The July-delivery contract advanced as much as 2.8 percent to 337.5 yen a kilogram ($4,225 a metric ton), the highest level since Sept. 26, before trading at 336.9 yen on the Tokyo Commodity Exchange at 12:49 p.m. Futures have gained 28 percent this year. May-delivery rubber on the Shanghai Futures Exchange climbed 0.8 percent to 29,140 yuan ($4,628) a ton.
Concerns eased that the European debt crisis may derail a global recovery and weaken raw material demand as seven months of negotiations ended in the pre-dawn hours in Brussels with Greece winning 130 billion euros ($172 billion) in aid it needs to avoid a March bankruptcy. Rains spread across 60 percent of Thailand’s southern provinces, disrupting latex tapping, according to the Rubber Research Institute of Thailand.
“Declining supplies in Thailand coupled with easing concerns over the European debt crisis helped boost prices,” said Chaiwat Muenmee, an analyst at Bangkok-based commodity broker DS Futures Co.
Higher oil prices were also supportive as crude rallied to a nine-month high after Iran said it stopped selling to France and Britain, boosting the appeal of natural rubber as an alternative to synthetic products. Oil for April delivery rose 2.6 percent to $106.25 a barrel, the highest settlement since May 4, on the New York Mercantile Exchange yesterday and traded at $106.13 at 12:51 p.m. in Tokyo.
The Thai cash price was unchanged at 125.85 baht ($4.10) a kilogram yesterday, the rubber institute said.
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