Rubber rises as Thai supply drops, oil climbs

Rubber advanced to the highest level since September 2008 as supply in Thailand, the world’s largest exporter, declined and an increase in oil prices boosted the cost of making rival synthetic products used in tires. Futures in Tokyo rose as high as 312.3 yen per kilogram ($3,373 a metric tonNE) after last week rallying 5.9 per cent. The price has advanced 13 per cent this year. Rubber for September delivery, the most-active contract, gained 1.9 per cent to settle at ¥312 on the Tokyo Commodity Exchange. Thai shippers raised offers for so-called RSS-3 grade rubber for May shipment to $3.40 a kilogram from $3.30 on March 25, Shigemoto said. During wintering rubber trees shed their leaves and latex production slows. The May-delivery contract rose 0.8 per cent to $80.61 a barrel in after-hours electronic trading on the New York Mercantile Exchange at 3:39 pm Tokyo time. Rubber for September delivery rose as much as 1.6 per cent to 25,185 yuan ($3,689) a ton on the Shanghai Futures Exchange, the highest level since March 1. It traded at 25,050 yuan at 2:45 pm local time. Natural rubber inventories monitored by the Shanghai bourse plunged 24,663 tonNEs to 74,220 tons, based on a survey of 10 warehouses, the exchange said March 26. That was the lowest level since August 2009.