Tokyo rubber hits 1 month high amid commodity rally

Tokyo rubber futures hit a one-month high on Monday as a rally in other commodities and oil markets helped improve sentiment.

* The key Tokyo Commodity Exchange rubber contract for June delivery <0#JRU:> traded at 135.3 yen per kg as of 0402 GMT, up 3.7 yen or 2.8 percent.

* The contract earlier rose as high as 139.5 yen, the highest for any benchmark since Nov. 25.

* "The market had been mainly driven by sellers, but things have changed," said Hitoshi Inagawa, senior manager at Yutaka Shoji Co, noting the rally in crude oil and other commodities.

* Oil prices rose as much as $2 to nearly $40 a barrel on Monday in the wake of Israel's attacks on the Gaza Strip, reminding traders of the geopolitical risk to crude supplies from the Middle East. [O/R] [ID:nLO226261]

* Gold <XAU=> jumped more than 2 percent to its strongest since early October as the violence in the Middle East pushed up oil and spurred safe-haven buying of bullion. [GOL/]

* Traders said some dealers will likely take delivery of rubber again when the spot January contract expires next month, which is supportive for the nearby months. Holding long positions until expiry instead of liquidating them helps maintain prices.

* The December contract expired on Dec. 19 with the highest number of lots for delivery since March 2007. [ID:nT231810]

* The TOCOM market is open for a half-day on Tuesday, the last session of the year. It reopens on Jan. 5 for a half-day session before full-day trade starts the following day.

http://uk.reuters.com/article/oilRpt/idUKT29253420081229

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Tokyo rubber hits 1 month high amid commodity rally