Futures Market News
Rubber increases as slow period dawns
Dec 27, 2010 05:24 PM
The top exporter of rubber is entering a season of low production which has driven the commodity to increase for a sixth straight day, Bloomberg reports.
Thailand’s production of latex will decrease as the slow harvest period between February and April will not see as many growers tapping into rubber trees.
"A bullish fundamental outlook spurred investor purchases," Kazuhito Saito, an analyst at Fujitomi in Tokyo, told Bloomberg.
The past two years have been remarkably successful for rubber as the commodity's price has climbed 51 percent this year and it more than doubled last year.
Saito said the market for rubber has moved forward because of a rally for copper and oil. Those price spikes influenced speculation about industrial commodities responding to a demand prompted by the economic recovery.
China and India, two nations with growing demand for cars, might help push rubber's price higher as the supply will shorten during the seasonal drop, Saito said.
In Thailand, the price for cash rubber increased 0.3 percent on Monday to a record price of 149.55 baht per kilogram.
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