Key Tokyo rubber futures jumped 4 percent to their highest in about a month on Monday, supported by a weaker yen, higher oil prices and supply concerns. The key Tokyo Commodity Exchange rubber contract for September delivery ended up 16.7 yen, or 3.9 percent, at 444.1 yen per kg. It earlier rose to 444.7 yen, its highest since March 8.
The Shanghai rubber market was closed for a holiday on Monday. The most active Shanghai rubber contract for September delivery fell 260 yuan to finish at 34,635 yuan ($5,288) per tonne on Friday. Thailand, the world's biggest rubber exporter, may not produce the 3.3 million tonnes it is aiming for this year because mudslides have devastated plantation areas and further heavy rain is forecast, traders said on Monday.
But the flood damage will have no impact on output or demand from No 2 producer Indonesia. "Flooding issues are usual, we don't have a tradition where buyers switch to Indonesian rubber," Suharto Honggokusumo, executive director of association Gapkindo told.
Comments
Comments are closed for this article.