Rubber advances as Yen declines
Wednesday, 2 December 2009
TOKYO, Dec 1 (Bloomberg): Rubber advanced as a drop in Japan's currency against the dollar raised the appeal of yen-based contracts and as shippers in Thailand increased prices after rain and flooding curbed production.
Futures in Tokyo gained as much as 1.5 per cent as the yen fell the most in seven weeks against the dollar after the Bank of Japan announced an emergency policy meeting Tuesday, spurring speculation it will seek to limit the currency's gains. Thai exporters boosted prices of so-called RSS-3 grade rubber for January shipment to $2.70 a kilogram today from $2.64 as of November 27, said Takaki Shigemoto, an analyst at research and investment company JSC Corp in Tokyo.
"Supply of raw material remains tight after rain and flooding disrupted tapping in the southern part of Thailand," Shigemoto said by phone. Futures also drew support from the currency market, he added.
Rubber for May delivery, the most-active contract, added 0.9 per cent to settle at 249.3 yen per kilogram ($2,873 a metric tonne) on the Tokyo Commodity Exchange.
The contract advanced 2.4 per cent Monday, the largest daily gain since November 19, amid speculation the impact on global markets from Dubai World's request to delay debt payments will be limited.
Futures in Tokyo gained as much as 1.5 per cent as the yen fell the most in seven weeks against the dollar after the Bank of Japan announced an emergency policy meeting Tuesday, spurring speculation it will seek to limit the currency's gains. Thai exporters boosted prices of so-called RSS-3 grade rubber for January shipment to $2.70 a kilogram today from $2.64 as of November 27, said Takaki Shigemoto, an analyst at research and investment company JSC Corp in Tokyo.
"Supply of raw material remains tight after rain and flooding disrupted tapping in the southern part of Thailand," Shigemoto said by phone. Futures also drew support from the currency market, he added.
Rubber for May delivery, the most-active contract, added 0.9 per cent to settle at 249.3 yen per kilogram ($2,873 a metric tonne) on the Tokyo Commodity Exchange.
The contract advanced 2.4 per cent Monday, the largest daily gain since November 19, amid speculation the impact on global markets from Dubai World's request to delay debt payments will be limited.