By Lewa Pardomuan
SINGAPORE, Feb 18 (Reuters) – Tokyo rubber futures will trade in a wide range this week to track movements in the yen currency, while Japanese sugar consumers may be forced to pay higher prices on thinner supply from Thailand, dealers said on Monday.
In the coffee market, robusta trading will pick up after a holiday in Vietnam, but cocoa butter prices in Asia could fall if values weaken again in Europe on talk that one U.S. multinational was a heavy seller in recent weeks.
The most active rubber contract on the Tokyo Commodity Exchange, currently July, added 2.9 yen a kg to 324.3 yen after falling as low as 320.0 yen on Friday, its lowest since Feb. 1, on a firmer yen and concerns over Europe’s economic outlook.
But the yen weakened on Monday after Japan escaped direct criticism from its G20 peers on its bold reflationary plans that have weakened the currency and provoked international complaints of competitive advantage.
“The weakening yen is still dominating the headlines, especially since the BOJ is going to name the next successor to the governor soon,” said Ker Chung Yang, senior investment analyst at Phillip Futures in Singapore, referring to the Japanese central bank.
“The selection of the candidates is going to dictate the movements of the yen and subsequently, those yen-denominated commodities will be affected as well,” said Ker, who expected TOCOM to trade in a range of 320 to 350 yen.
Tokyo futures, which set the tone for tyre grade prices in Southeast Asia, had rallied to their highest in 10 months around 337 yen this month, because of the weak Japanese currency.
Source: Reuters
