TOKYO, Nov 16 (Reuters) – Benchmark Tokyo rubber futures hit a near 16-month high on Wednesday, extending gains on a weaker yen and firmer crude oil prices. Tokyo Commodity Exchange (TOCOM) futures, which set the tone for tyre rubber prices in Southeast Asia, have also got support from a jump in Shanghai futures, which rose to a near 17-month high hit on Monday.
Oil futures rose on Wednesday, shrugging off an industry report that showed an unexpected build in U.S.crude stocks, and adding to gains of nearly 6 percent from the previous session.
O/R The dollar was quoted at a five-month high against the yen, driven by a rise in U.S.bond yields after Donald Trump won the presidential election.
USD/ The Tokyo Commodity Exchange rubber contract for April delivery JRUc6 0#2JRU: finished 12.1 yen higher at 212.4 yen ($1.95) per kg after touching 212.7 yen earlier, the highest since July 24, 2015. “Asian currencies have been weakening, buoying the market,” said a Tokyo-based dealer.
The most-active rubber contract on the Shanghai futures exchange for January delivery SNRcv1 rose 935 yuan to finish at 16,540 yuan ($2,408) per tonne. The front-month rubber contract on Singapore’s SICOM exchange for December delivery STFc1 last traded at 172 U.S. cents per kg, up 5.6 cents.
($1 = 109.0900 yen)
($1 = 6.8693 Chinese yuan renminbi)
(Reporting by Osamu Tsukimori; Editing by Vyas Mohan)