Tokyo Futures Rise 3 Pct On Commodity Rally

Key Tokyo rubber futures rose more than 3 percent on Monday (Apr 11), drawing support from a rally in other commodities markets late last week.
FUNDAMENTALS
The key Tokyo Commodity Exchange rubber contract for September delivery rose as high as 481.9 yen per kg after the open, up 18.1 yen or 3.9 percent from Friday's (Apr 8) settlement of 463.8 yen. That was the highest for a benchmark contract since March 3.
The contract last week posted its biggest weekly increase since the week ending on March 18.
Tokyo rubber futures were expected to stay firm and were likely to rise further on the back of supply tightness at a time when demand remains strong, a Reuters poll showed on Friday (Apr 8).
The most active Shanghai rubber contract for September delivery rose 890 yuan to close at 36,680 yuan ($5,606) per tonne on Friday (Apr 8). Volume picked up to 581,410 lots from Thursday's 448,114 lots.
U.S. crude futures rose above $113 a barrel on Monday (Apr 11), their highest since September 2008, as a weak dollar continued to support a recent rally in commodities. Oil also drew extra support from fears that the war in Libya was starting to inflict lasting damage on the oil sector.
The yen stayed on the backfoot early in Asia on Monday (Apr 11), while the dollar struggled against other currencies as investors continued to pile on carry trades in favour of higher-yielding assets.
(Reuters, April 11, 2011)