TOCOM hits 2-week high on firm Shanghai futures

TOKYO: Benchmark Tokyo rubber futures extended gains and hit a two-week high on Thursday on the back of firm Shanghai futures.

The market may get further support as the International Rubber Consortium (IRCo) will hold an internal meeting of its Committee on Strategic Market Operations this weekend in Indonesia to discuss falling rubber prices.

Rubber Authority of Thailand Governor Titus Suksaard confirmed the meeting will take place. He said the Rubber Authority would attend the meeting to discuss measures to stabilize rubber prices, which could include curbing exports and production.

The meeting follows benchmark Tokyo rubber futures dropping to a seven-month low last week.

But some market participants wondered whether production cuts, if any, would help improve rubber prices much further as such cuts in the past had rarely led to higher prices.

The Tokyo Commodity Exchange rubber contract for November delivery  finished 3.9 yen higher at 199.4 yen  ($1.82) per kg after hitting a two-week high of 199.5 yen earlier.

The most-active rubber contract on the Shanghai futures exchange for September delivery rose 160 yuan to finish at 12,845 yuan ($1,891) per tonne after hitting a near two-week low earlier.

The front-month rubber contract on Singapore's SICOM exchange for July delivery last traded at 146.5 U.S. cents per kg, up 1.6 cent.