BANGKOK (Aug 25): Tokyo rubber futures ended higher on Monday, rising for a sixth consecutive session on the back of firm equities, but the upside was limited on fears of rising supply due to stock sales by the Thai government, dealers said.
The Tokyo Commodity Exchange rubber contract for January delivery rose 0.6 yen to settle at 202.8 yen ($1.95) per kg.
“Firmness in share prices lent support to TOCOM, but concerns on possible rising supply due to the Thai government stocks sales pared gains,” said a Tokyo-based dealer.
Tokyo stocks rebounded to a 3-1/2-week high on Monday, led by exporters and others as the yen hit a seven-month low against the dollar after a gathering of central bankers underscored the diverging path of Japanese and U.S. interest rates.
The Thai military government has approved a plan to sell its 200,000 tonne rubber stockpile, a senior government official said on Monday, aiming to cut storage costs and ending a stock overhang that has weighed on prices.
Dealers said TOCOM prices could rise further on Tuesday after prices finished above a major support level of 200 yen.
“A clear signal from the Thai government has helped stop prices from falling and sentiment should improve from now on,” said another Malaysian trader.
The most-active rubber contract on the Shanghai futures exchange for January delivery fell 65 yuan to finish at 15,015 yuan ($2,440.75) per tonne.
The front-month rubber contract on Singapore’s SICOM exchange for September delivery was last traded at 167.0 U.S. cents per kg.
(1 US dollar = 104.1700 Japanese yen)
(1 US dollar = 6.1518 Chinese yuan)
– Reuters
