TOKYO (Jan 19): Benchmark Tokyo rubber futures pared gains by close of trade on Thursday after Thailand planned to sell rubber from state stockpiles to ease shortages following flash floods that hit the country’s main production region.
Tokyo Commodity Exchange (TOCOM) futures, which set the tone for tyre rubber prices, may enter an adjustment phase after Thailand’s rubber authority said it would sell 98,000 tonnes of rubber worth over US$187 million from state stockpiles in the first state auction of the year, a Tokyo-based broker said.
TOCOM and Shanghai rubber futures traded near multi-year highs hit on Tuesday as continued rains and floods in Thailand were expected to cut its rubber output, raising worries over tight supply.
The Tokyo Commodity Exchange rubber contract for June delivery finished 0.6 yen higher at 301.5 yen (US$2.63) per kg on the back of a weaker yen against the dollar, which makes yen-denominated commodities cheaper for holders of other currencies.
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The most-active rubber contract on the Shanghai futures exchange for May delivery fell 120 yuan to finish at 21,155 yuan (US$3,081) per tonne.
The front-month rubber contract on Singapore’s SICOM exchange for February delivery last traded at 218 US cents per kg, down 2 US cents.
(US$1 = 114.6000 yen)
(US$1 = 6.8671 Chinese yuan)
