Rubber climbed to a record for a fourth day as signs the economic recovery in the U.S. is gaining strength stoked speculation that demand will expand, while higher oil prices boosted the cost of making rival synthetic products. The Thai cash price also gained to an all-time high. The June-delivery contract, which listed today on the Tokyo Commodity Exchange, advanced to 417 yen per kilogram ($4,975 a metric ton) before trading at 415.7 yen at 1:06 p.m. That’s higher than yesterday’s peak of 413.8 yen for the May contract. Crude oil surged to a two-year high as U.S. same-store sales jumped the most since April and the Standard & Poor’s 500 Index recovered from its 2008 plunge. The recovery may widen a rubber supply shortage as output from Thailand, the world’s biggest exporter, has been hurt by heavy rains and may shrink further as the low-production season starts around February. “Bullish fundamentals support rubber prices,” Kazuhiko Saito, an analyst at Tokyo-based broker Fujitomi Co., said today by phone. “Investors are becoming optimistic about the global economic recovery and growth in industrial commodity demand.” The Thai cash price advanced 1 percent to 148.05 baht ($4.91) per kilogram, the Rubber Research Institute of Thailand said today. Fundamental factors remain supportive as supplies are inadequate following persistent rains across major producing countries amid strong demand, the institute said. ‘Recovery Trend’ “The U.S. economy is on a recovery trend,” said Hiroichi Nishi, an equities manager at Nikko Cordial Securities Inc. “The global economic recovery, surplus money and confidence in government measures are boosting commodity prices.” Same-store sales at a selection of U.S. retailers posted their biggest holiday jump, according to a chain-store sales index released by the New York-based International Council of Shopping Centers and Goldman Sachs Group Inc. Holiday retail sales are a key economic indicator in the U.S. Japan’s export growth accelerated for the first time in nine months as a rebound in global demand helped the nation’s economy withstand an advance in the yen. Overseas shipments rose 9.1 percent in November from a year earlier, compared with October’s 7.8 percent, the Finance Ministry said today. The rebound eased concern Japan is losing the main driver of a recovery from its worst postwar recession. May-delivery rubber in Shanghai lost 0.7 percent to 37,425 yuan ($5,624) a ton at the break after rising as much as 0.2 percent. The contract climbed to a record 38,920 yuan Nov. 11. To contact the reporters on this story: Aya Takada in Tokyo at atakada2@bloomberg.net; Supunnabul Suwannakij in Bangkok at ssuwannakij@bloomberg.net To contact the editor responsible for this story: Richard Dobson at Rdobson4@bloomberg.net

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