Rubber ends unchanged, may drop on yen, Thai supply speculation
Tuesday, 6 July 2010
BANGKOK, July 5 (Bloomberg): Rubber futures in Tokyo, which closed unchanged Monday, may decline later this week on speculation that supply from Thailand, the largest exporter, may gain and a stronger Japanese yen.
Futures in Tokyo swung between a gain and loss of 0.6 per cent before settling at 266.6 yen per kilogram ($3,031 a metric tonne). The December-delivery contract touched 260.3 yen on July 2, the lowest level since June 10, on concern that a slowing global economic recovery may weaken demand for the commodity used for tires and gloves.
The contract "may head lower tomorrow as the yen continues to appreciate, while supplies in Thailand have gradually improved," said Chaiwat Muenmee, an analyst at Bangkok-based commodity broker DS Futures Co.
Cash prices in Thailand were also unchanged at 112.60 baht ($3.47) a kilogram Monday, according to the Rubber Institute of Thailand. The volume of rubber traded in southern Thailand, the main producing region, rose to 145 tonnes Monday compared with about 120 tonnes per day in recent weeks, Chaiwat said.
Futures in Tokyo swung between a gain and loss of 0.6 per cent before settling at 266.6 yen per kilogram ($3,031 a metric tonne). The December-delivery contract touched 260.3 yen on July 2, the lowest level since June 10, on concern that a slowing global economic recovery may weaken demand for the commodity used for tires and gloves.
The contract "may head lower tomorrow as the yen continues to appreciate, while supplies in Thailand have gradually improved," said Chaiwat Muenmee, an analyst at Bangkok-based commodity broker DS Futures Co.
Cash prices in Thailand were also unchanged at 112.60 baht ($3.47) a kilogram Monday, according to the Rubber Institute of Thailand. The volume of rubber traded in southern Thailand, the main producing region, rose to 145 tonnes Monday compared with about 120 tonnes per day in recent weeks, Chaiwat said.