Rubber rose from the largest weekly loss since November as Japan’s currency weakened, boosting the appeal of the yen-denominated commodity used in tires and gloves.
The contract for July delivery gained as much as 1.8 percent to 327.2 yen a kilogram ($3,479 a metric ton) on the Tokyo Commodity Exchange and was at 325.6 yen at 11:37 a.m. Futures fell 2.7 percent last week, the most since the week through Nov. 9.
Asian stocks rose as the yen dropped after the Group of 20 nations refrained from censuring Japan’s currency policy, while signaling that the country has scope to keep stimulating its stagnant economy as long as policy makers cease publicly advocating a sliding yen.
“The weakening yen is supportive to rubber markets,” Chaiwat Muenmee, an analyst at DS Futures Co., said by phone from Bangkok. Chinese buyers may increase purchases after returning from Lunar New Year holidays last week, he said.
The contract for September delivery on the Shanghai Futures Exchange lost 0.9 percent to 26,480 yuan ($4,243) a ton as trade resumed. Thai rubber free-on-board dropped 0.3 percent to 97.45 baht ($3.26) a kilogram on Feb. 15, according to the Rubber Research Institute of Thailand.
Thailand has spent 22 billion baht buying 198,000 tons from farmers above market rates to boost local prices, Yuttapong Charasathien, deputy farm minister, said last week. The National Rubber Policy Committee approved spending a further 5 billion baht and has no immediate plan to sell stockpiles, he said.
Source: Bloomberg
