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Rubber Set for Third Weekly Advance on Weak Yen, China Optimism

Rubber traded near the highest in more than two months, heading for a third weekly advance, as a weaker Japanese currency raised the appeal of yen-denominated futures and speculation grew that Chinese demand will expand.

The contract for delivery in May on the Tokyo Commodity Exchange climbed as much as 0.5 percent to 285.6 yen a kilogram ($2,760 a metric ton), the highest level since Sept. 20. Futures traded at 284.2 yen at 10:15 a.m., gaining 3.1 percent this week.

TOCOM Rubber Futures Prices on Friday, December 13, 2013 (yen/kilogram)

Month

Last Settlement Price

Open

High

Low

Current

Change

Volume

Dec 2013

279.2

278.6

281.0

278.6

281.0

+1.8

44

Jan 2014

278.3

278.8

280.8

278.4

280.1

+1.8

66

Feb 2014

277.7

278.7

279.4

277.4

279.0

+1.3

315

Mar 2014

279.0

280.0

280.6

278.4

279.7

+0.7

251

Apr 2014

281.9

283.2

283.5

281.1

282.5

+0.6

918

May 2014

284.1

285.3

285.9

283.3

285.4

+1.3

5,383

Total

 

6,977

 

The yen slid to 103.66 per dollar, the lowest level in more than six months, as improving U.S. economic data boosted bets the Federal Reserve will reduce stimulus as early as next week. Data this week showed passenger-vehicle sales rose 16 percent in China last month, boosting speculation demand for rubber from tiremakers will increase, said Kazuhiko Saito, an analyst at broker Fujitomi Co. in Tokyo.

“The market is supported by a weak yen and optimism about Chinese demand,” he said by phone.

China’s imports of natural rubber and latex climbed to a record 270,000 tons in November, according to General Administration of Customs. Data also showed this week U.S. retail sales rose more than forecast last month as Americans bought cars and took advantage of discounts going into the holiday-shopping season.

The contract for May delivery on the Shanghai Futures Exchange lost 1 percent to 19,930 yuan($3,283) a ton. Thai rubber free-on-board added 0.6 percent to 82.95 baht ($2.58) a kilogram yesterday, according to the Rubber Research Institute of Thailand.

Source: Bloomberg

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