TOKYO (April 25): Benchmark Tokyo rubber futures rose on Tuesday, getting support from a weaker yen and firm Shanghai futures.
Tokyo Commodity Exchange (TOCOM) futures, which set the tone for tyre rubber prices in Southeast Asia, also got support after an official with a consortium of major producers indicated that Thailand, Indonesia, and Malaysia might limit exports of natural rubber to reduce price volatility.
The Tokyo Commodity Exchange rubber contract for new October delivery finished 1.5 yen higher at 218.3 yen (US$1.98) per kg compared with the opening price, marking the highest settlement since April 14.
“Firm Shanghai market and a weaker yen supported TOCOM,” said a Tokyo-based broker.
The US dollar rose 0.3% to 110.08 yen, as the safe-haven yen edged lower. A weaker yen makes yen-denominated commodities cheaper for holders of other currencies.
The most-active rubber contract on the Shanghai futures exchange for September delivery rose 10 yuan to finish at 14,670 yuan (US$2,131) per tonne after hitting a one-week high earlier.
The front-month rubber contract on Singapore’s SICOM exchange for May delivery last traded at 158.1 US cents per kg, down 1.1 US cents.
(US$1 = 6.8830 Chinese yuan)
(US$1 = 110.1700 yen)
