Rubber surged to a nine-month high as Japanese Prime Minister Shinzo Abe moved to add economic stimulus and the nation’s currency slid to the lowest level since June 2010 against the dollar, raising the appeal of yen- based contracts.
Rubber for delivery in June jumped as much as 2.5 percent to 321 yen a kilogram ($3,609 a metric ton) on the Tokyo Commodity Exchange, the highest level for the most-active contract since April 11. Futures have gained 5.1 percent this year, extending last year’s advance of 15 percent.
The yen extended its ninth week of declines amid speculation that the Bank of Japan (8301) will agree to double inflation target to 2 percent at a policy meeting this month in line with Abe’s economic policy. The currency also came under pressure after data showed Japan posted wider-than-expected current account and trade deficits.
“A weakening yen and Abe’s stimulus policy have created a bullish mood in the Tokyo market,” Takaki Shigemoto, an analyst at research company JSC Corp. in Tokyo, said by phone.
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Rubber for delivery in May gained 0.6 percent to 26,325 yuan ($4,234) a ton on the Shanghai Futures Exchange. Thai rubber free-on-board rose 1 percent to 102.55 baht ($3.39) a kilogram yesterday, according to the Rubber Research Institute of Thailand.
TOCOM futures rubber prices on Jan 11, 2013 (yen / kilogram)
|
Month |
Last Settlement Price |
Open |
High |
Low |
Current |
Change |
Volume |
|
Jan 2013 |
298.7 |
300.4 |
306.3 |
300.4 |
302.0 |
+3.3 |
23 |
|
Feb 2013 |
299.9 |
301.0 |
306.6 |
301.0 |
303.0 |
+3.1 |
73 |
|
Mar 2013 |
302.9 |
304.3 |
310.1 |
304.3 |
305.6 |
+2.7 |
397 |
|
Apr 2013 |
306.6 |
308.1 |
314.0 |
307.5 |
308.9 |
+2.3 |
310 |
|
May 2013 |
309.7 |
311.6 |
317.0 |
310.5 |
312.5 |
+2.8 |
550 |
|
Jun 2013 |
313.3 |
314.7 |
321.0 |
314.2 |
316.4 |
+3.1 |
5,809 |
|
Total |
|
7,162 |
|||||
Source: Bloomberg
