TOKYO (Nov 6): Benchmark Tokyo rubber futures hit a near four-week high on Monday, helped by a jump in Shanghai futures to highest in five weeks and the yen’s decline to a near eight-month low against the dollar, brokers said.
Tokyo Commodity Exchange (TOCOM) futures, which set the tone for tyre rubber prices in Southeast Asia, also got support as floods that damaged rubber plantations in southern Vietnam raised concerns over supply.
Japanese markets were closed on Friday for a national holiday.
The dollar touched its highest level in nearly eight months versus the yen on Monday, supported by expectations for continued monetary policy divergence between the Federal Reserve and the Bank of Japan.
The most-active rubber contract on the Shanghai futures exchange for January delivery rose 430 yuan to finish at 14,135 yuan (US$2,129) per tonne, after touching 14,235 yuan, the highest since Sept 28.
The front-month rubber contract on Singapore’s SICOM exchange for December delivery last traded at 145 U.S. cents per kg, up 2.3 cents.
(US$1 = 114.3800 yen)
(US$1 = 6.6389 Chinese yuan)