TOKYO (Jan 10): Benchmark Tokyo rubber futures hit their highest in nearly two weeks on Wednesday on the back of oil’s rise to the highest since 2014, before paring gains on the yen’s advance against the dollar and sluggish Shanghai futures, brokers said.
Rubber prices have not gotten much support from a coordinated producers’ curb in output. A group of three of the world’s top natural rubber producers will cut exports by up to 350,000 tonnes in total until March, the Thai agriculture ministry said late last month.
Oil prices hit their highest levels since 2014 on Wednesday due to ongoing production cuts led by OPEC as well as healthy demand.
The dollar extended losses against the yen after the Bank of Japan’s move to trim Japanese government bond (JGB) purchases in the previous session triggered speculation that it could begin tapering its massive, ultra-easy monetary stimulus.
The most-active rubber contract on the Shanghai futures exchange for May delivery fell 60 yuan to finish at 14,035 yuan (US$2,151) per tonne.
(US$1 = 112.0900 yen)
(US$1 = 6.5242 Chinese yuan)