TOKYO (Jan 18): Benchmark Tokyo rubber futures rose on Thursday, snapping two days of losses, as higher physical prices in Thailand and a drop in the yen against the dollar lent support, dealers said.
“Higher offer prices by producers in Thailand also supported the market,” said Toshitaka Tazawa, an analyst at commodities broker Fujitomi Co, noting that a reduction in exports by top producers may be having an effect.
In December, a group of three of the world’s top natural rubber producers agreed to cut exports by up to 350,000 tonnes in total until March this year in a bid to address declining global prices.
The Tokyo Commodity Exchange (TOCOM) rubber contract for June delivery finished 2.5 yen, or 1.2%, higher at 212.0 yen (US$1.91) per kg.
The most-active rubber contract on the Shanghai futures exchange for May delivery fell 35 yuan to finish at 14,165 yuan (US$2,205) per tonne.
The dollar rose 0.1% against the Japanese unit to 111.36 yen on Thursday, having bounced from Wednesday’s four-month low of 110.19 yen.
A weaker yen makes yen-denominated assets more affordable when purchased in other currencies.
The front-month rubber contract on Singapore’s SICOM exchange for February delivery last traded at 152.1 US cents per kg, down 0.5 cent.
(US$1 = 111.2200 yen)
(US$1 = 6.4240 Chinese yuan)
