18.4 C
New York
Wednesday, May 18, 2022

Rubber in Tokyo Pares Weekly Drop as Yen Weakens to 5-Year Low

Rubber in Tokyo climbed, paring the first weekly drop in four, as the Japanese currency reached the weakest level since 2008 against the dollar, raising the appeal of yen-based futures.

The contract for delivery in May on the Tokyo Commodity Exchange advanced as much as 0.4 percent to 281.7 yen a kilogram ($2,700 a metric ton), and traded at 281 yen at 10:52 a.m. local time. The gain pared losses for the most-active contract to 1 percent this week.

TOCOM Rubber Futures Prices on Friday, December 20, 2013 (yen/kilogram)

Month

Last Settlement Price

Open

High

Low

Current

Change

Volume

Dec 2013

285.0

288.0

288.6

287.2

288.3

+3.3

18

Jan 2014

279.8

281.2

282.0

281.2

282.0

+2.2

118

Feb 2014

278.0

278.4

280.0

278.0

278.5

+0.5

154

Mar 2014

278.1

277.9

281.0

277.9

279.8

+1.7

139

Apr 2014

278.7

279.0

282.5

278.4

281.2

+2.5

192

May 2014

280.6

280.3

284.5

280.1

283.1

+2.5

3,083

Total

 

3,704

The yen declined to 104.43 per dollar, the lowest level since October 2008, after the Federal Reserve announced its first cut to economic stimulus. The Bank of Japan will conclude a two-day policy meeting today. Of 37 economists surveyed by Bloomberg last month, 19 predicted the BOJ would extend monetary easing during the April-to-June period next year.

“The yen is vulnerable to selling because of a difference in stance over stimulus between the U.S. and Japanese central banks,” said Hideshi Matsunaga, an analyst at broker Evolution Japan Co. in Tokyo. “A weak yen will continue to provide support to futures in Tokyo.”

Gains were limited by speculation that rising supply in China will cap rubber futures in Shanghai, he said. Rubber inventories in Qingdao, China’s main hub for the commodity, advanced for a third week to 282,700 tons from 276,300 tons at the end of November, according to the Qingdao International Rubber Exchange.

The contract for May delivery on the Shanghai Futures Exchange dropped 0.1 percent to 19,030yuan ($3,135) a ton. Thai rubber free-on-board was unchanged at 82.85 baht ($2.56) a kilogram yesterday, according to the Rubber Research Institute of Thailand.

Source: Bloomberg

Related Articles

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Stay Connected

11,298FansLike
12,893FollowersFollow
752FollowersFollow
- Advertisement -

Latest Articles

Popular Articles