Rubber headed for the first weekly advance in five as the yen near a four-year low against the dollar boosted investor interest in the yen-denominated futures and after Thailand took measures to bolster prices.
Futures for delivery in September was up 0.3 percent at 277.7 yen a kilogram ($2,790 a metric ton) on the Tokyo Commodity Exchange at 11:00 a.m. in Tokyo, near the highest settlement in two weeks reached yesterday. Futures have gained 9.3 percent this week.
The yen neared 100 per dollar, the weakest level since April 2009, amid speculation money will flow out of Japan in search of higher yields as the nation’s central bank took unprecedented monetary easing to spur inflation. Thailand, the world’s largest producer, targets to lower shipments by 10 percent through end of May to help support prices, Deputy Farm Minister Yuttapong Charasathien said yesterday.
“Investors have focused on whether producing countries will agree to take coordinated action to bolster prices,” Takaki Shigemoto, analyst at research company JSC Corp. in Tokyo, said today by phone.
Thailand, Indonesia and Malaysia, which represent 70 percent of global rubber production, will conclude a three-day meeting today over measures to support prices.
Futures in Tokyo entered a bear market on April 1 amid concerns weak demand from China, the world’s largest consumer, will expand global glut.
Global natural-rubber reserves are poised to advance to the highest level in 13 years as production exceeds consumption through next year, pressuring prices, according to London-based industry adviser The Rubber Economist.
Thai rubber free-on-board added 1.2 percent to 83.25 baht ($2.86) a kilogram yesterday, according to the Rubber Research Institute of Thailand. The price rebounded after touching 81.75 baht on April 5, the lowest level since November 2009.
On the Shanghai Futures Exchange, the contract for September delivery added 0.4 percent to 21,535 yuan ($3,475) a ton.
Source: Bloomberg
