TOKYO (June 14): Benchmark Tokyo rubber futures on Wednesday jumped more than 5% to their highest in nearly two weeks, backed by Thai government’s plan to help rubber farmers and stabilise falling prices.
Thailand’s cabinet on Tuesday approved measures, including an extension to a 10 billion baht (US$295 million) loan programme for agricultural cooperatives for three more years, another 10 billion baht loan programme for rubber businesses.
“News on Thailand’s plan to shore up rubber prices was the first good news in a while and that helped boost market sentiment,” said Toshitaka Tazawa, analyst, Fujitomi Co.
The Tokyo Commodity Exchange (TOCOM) rubber contract for November delivery finished up 10.2 yen, or 5.5%, at 195.5 yen (US$1.77) per kg. Earlier in the session, it touched 196.5 yen, its highest since June 2.
The most-active rubber contract on the Shanghai futures exchange for September delivery also surged 360 yuan to finish at 12,900 yuan (US$1,899) per tonne.
“But I do not know how long this bullish trend will last as Thailand was supposed to sell remaining inventories by end-May, but it didn’t and changed its policy, instead,” he said.
Thailand, the world’s biggest rubber producer, said in March that it would aim to offload remaining 107,000 tonnes of rubber stockpiles by end-May.
The front-month rubber contract on Singapore’s SICOM exchange for July delivery last traded at 144.6 US cents per kg, up 6.2 US cents.
(US$1 = 33.9300 baht)
(US$1 = 110.1700 yen)
(US$1 = 6.7930 Chinese yuan)
