[Dow Jones] Tocom rubber futures settle 2.1% higher after gaining as much as 3.7% owing to the weak yen and easing inflation in China. “While a rise in rubber prices is welcome after two months of price declines it’s worrying that the gains are based on currency factors rather than on actual demand,” says a trading executive in Phuket who adds that prices should be in backwardation now as a result of the low-production season but prices are still in contango as the weak yen is distorting Tocom.
Traders will be watching a three-day rubber conference in Phuket from Wednesday where Thailand, Indonesia and Malaysia are expected to consider extending a collective export cut. Most see key resistance at Y280/kg. Benchmark September rubber settles Y5.6 higher at Y275.9/kg–off the intraday high of Y280.3/kg.
