TOKYO: Benchmark Tokyo rubber futures gained on Thursday, helped by lower yen and market talk that the state-run Rubber Estate Organisation (REO) in Thailand had bought about 400 tonnes of rubber to help support prices, dealers said.
The Tokyo Commodity Exchange rubber contract for April delivery finished 1.8 yen higher at 194.4 yen ($1.6957) per kg.
“A rebound in oil prices and the U.S. dollar’s gain against the yen overnight helped improve investors sentiment in early trade,” a Tokyo-based trader said.
The dollar steadied after hitting a seven-year high against the yen on Thursday as traders sold into a steep rally ahead of a European Central Bank meeting later in the session.
“Then, a rumour that the REO in Thailand bought nearly 400 tonnes of rubber prompted short coverings and fresh buys in afternoon trade,” he said.
Last month, Thailand’s government announced a series of measures to support rubber farmers reeling from a slump in global prices to five-year lows.
“But the size of the purchase was small and there are still doubts among market participants about the feasibility and effectiveness of the government’s measures,” the dealer said.
The most-active rubber contract on the Shanghai futures exchange for January delivery fell 175 yuan to finish at 12,300 yuan ($2,013) per tonne.
The front-month rubber contract on Singapore’s SICOM exchange for December delivery last traded at 151.5 U.S. cents per kg, up 5.3 cent.
– Reuters
