The major natural rubber producing countries
agreed earlier this month to explore ways to strengthen prices, including a
common trading platform. The world’s largest natural rubber supplier – Thailand
is working on ways to reduce supply to boost prices. Inventories tracked by the
Shanghai Futures Exchange have dropped 15% this year and this month touched the
lowest since September 2013.
Japan’s currency fell to the lowest level
since 2007 against the dollar, boosting the appeal of contracts denominated in
yen. Optimism about Chinese demand and a weaker yen supported rubber prices. Rubber
in Tokyo advanced by the most since May 2013 as Japan’s currency plunged. The
contract for November delivery on the Tokyo Commodity Exchange surged 6.3% to
settle at ¥231.2 a kg, the highest since April 2014.
The benchmark RSS4 grade rubber closed at `.125.50
a kg at Kottayam, while RSS3 grade closed at `.118.78 a kg at
Bangkok and Malaysian SMR20 closed at `.97.79 a kg. On
National Multi Commodity Exchange June 2015 futures closed at `.127.43
a kg, July at `.129.53 and August at `.129.89 a kg. On
Tokyo Commodity Exchange, June 2015 futures series closed at ¥220.1 a kg, July at
¥221.9, August at ¥223.5, September at ¥226.5 October at ¥229.3 and the
contract for delivery in November 2015 closed at ¥231.2 a kg. On Wednesday,
most probably Tocom futures contract for delivery in November 2015 may trade in
the range of ¥228 & ¥236 a kg.
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