Rubber futures rise

Rubber futures rise

SINGAPORE (Reuter): Singapore rubber futures, maintaining their upward momentum, moved higher in quiet morning trade on the back of further Indonesian gains, brokers said.

They said there were rumors Indonesia's SIR20 rubber FOB Jambi changed hands at 73 U.S. cents a pound, the highest level in seven months.

Jambi is near the main rubber producing region on Sumatra recently hit by a powerful earthquake.

The last time Indonesian prices rose above the 70 cents mark were in May this year, fueled by Chinese buying and coupled with floods and heavy rains in growing areas.

Traders said the latest bull run was boosted by renewed Chinese buying. This was followed by heavy consumer and dealer short-covering and a reserve of sellers amid a wet spell across Sumatra.