BANGKOK, Dec 19 (Reuters) – Tokyo rubber futures edged higher on Wednesday, hovering near its strongest level in seven months, as the yen weakened and Japanese stocks rose on growing expectations of easier monetary policy under a new government.
The benchmark rubber contract on the Tokyo Commodity Exchange for May delivery settled 2 yen higher at 287.7 yen ($3.43) per kg after rising as high as 288.5 yen.
“TOCOM prices rose in line with Japanese shares prices, but profit-taking prevented them from rising substantially,” said a Bangkok-based dealer.
Tokyo futures, which set the tone for physical prices, rallied to 289 yen on Tuesday, the highest since May, because of a drop in the yen, making yen-priced TOCOM rubber cheaper for holders of other currencies.
Tokyo rubber hit an all-time high of 535.7 yen in February 2011, driven by a combination of seasonal dry weather that cut supply and hoarding by local traders who kept rubber in warehouses, waiting to capitalise on higher prices.
The most-active rubber contract on the Shanghai futures exchange for May delivery slipped 10 yuan to finish at 25,280 yuan ($4,100) per tonne.
The front-month rubber contract on Singapore’s SICOM exchange for January delivery was last traded at $2.91 per kg, down 1.8 cents.
($1 = 83.9850 Japanese yen) ($1 = 6.2324 Chinese yuan) (Reporting by Apornrath Phoonphongphiphat; Editing by Prateek Chatterjee)
Source: Reuters
