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Wednesday, August 10, 2022

Rubber Futures Post Weekly Loss as Stronger Yen Reduces Appeal

Rubber futures in Tokyo declined, posting a weekly drop, as the Japanese currency strengthened, reducing the appeal of yen-denominated contracts.

The contract for delivery in April on the Tokyo Commodity Exchange fell 0.4 percent to close at 256.9 yen a kilogram ($2,618 a metric ton). Futures dropped 1.1 percent this week while the yen appreciated 0.5 percent.

Japan’s currency traded at 98.13 yen against the dollar, after dropping to a seven-week low yesterday as stronger U.S. economic growth fueled bets the Federal Reserve may cut stimulus sooner than expected. The U.S. economy expanded at a 2.8 percent annualized rate last quarter, exceeding the median economist forecast for 2 percent growth.

“The stronger yen puts pressure on Tocom rubber,” said Gu Jiong, an analyst at commodity broker Yutaka Shoji Co. Investors are also awaiting direction from U.S. jobs data later today, Gu added.

Natural rubber imports by China, the biggest buyer, were 190,000 tons in October, the customs agency said. That compared with 179,921 tons in September and 170,409 tons in the same month last year, according to Bloomberg data.

Rubber for May delivery on the Shanghai Futures Exchange dropped 0.7 percent to close at 19,470 yuan ($3,197) a ton. Thai rubber free-on-board gained 0.6 percent to 78.05 baht ($2.49) a kilogram today, according to the Rubber Research Institute of Thailand.

Source: Bloomberg

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