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Thursday, October 21, 2021

Rubber Climbs to 3-Month High on Weaker Yen, Signs of Recovery

Rubber climbed to the highest level in almost three months as a weaker Japanese currency boosted the appeal of yen-denominated futures, and after improved data from the U.S. to Chinaimproved the outlook for demand.

Rubber for delivery in January on Tokyo Commodity Exchange gained as much as 2.0 percent to 271.2 yen a kilogram ($2,741 a metric ton), the highest level for a most-active since May 29. Futures traded at 270.8 yen at 11:40 a.m., heading for the third weekly advance.

The yen declined to 99.1 per dollar, the lowest level since Aug. 5, amid speculation the Federal Reserve will reduce stimulus next month. American jobless claims fell to a five-year low over the past month and euro zone and Chinese factory output rose more than estimated, adding to signs of global recovery.

“Rubber drew support from the currency market and improvement in China’s economic data,” said Takaki Shigemoto, an analyst at research company JSC Corp. in Tokyo.

Rubber for delivery in January added 1.5 percent to 20,155 yuan ($3,292) a ton on the Shanghai Futures Exchange. Thai rubber free-on-board gained 2.2 percent to 82.70 baht ($2.59) a kilogram yesterday, according to the Rubber Research Institute of Thailand.

Source: Bloomberg

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