Tokyo Futures Edge Higher On Share Price Gains

Key Tokyo rubber futures edged higher on Tuesday (Mar 1) in their first rise in eight sessions, helped by a recovery in stock markets, but persistent concerns about unrest in Libya and the surrounding region weighed on prices.
The benchmark rubber contract on the Tokyo Commodity Exchange for August delivery was up 7.3 yen or 1.6 percent at 473.7 yen as of 0037 GMT.
The benchmark contract ended the month nearly flat on Monday, after the previous benchmark contract for July delivery hit a record high of 535.7 yen in mid-February.
The most active Shanghai rubber contract for May delivery rose 1,030 yuan or 2.7 percent to close at 39,315 yuan ($5,979) per tonne on Monday (Feb 28).
The dollar struggled to regain its footing in Asia on Tuesday (Mar 1) after a steep decline, while the euro held firm as investors bet the Federal Reserve will stick to its easing course even as the ECB talks of tightening.
Brent crude rose more than $2 a barrel on Monday (Feb 28) as concern persisted about security of supply from the Middle East and North Africa even after top exporter Saudi Arabia boosted supply to meet the shortfall caused by a cut in exports from Libya.
Global natural rubber output will rise nearly 5 percent in 2011, a senior economist of the ANRPC grouping of rubber producing nations said on Monday (Feb 28), lower than 8 percent targeted by their governments, as record prices take their toll on yields.
Japan's crude rubber inventories rose 2.1 percent from Jan. 31 to Feb. 10, to their highest level since July 2009, Rubber Trade Association of Japan data showed on Monday (Feb 28).
(Reuters, March 1, 2011)