Rubber futures jumped to the highest level in almost two months after shipment restrictions by Thailand, the world’s largest exporter, boosted cash prices above the benchmark contract on the Tokyo Commodity Exchange.
Rubber for delivery in October climbed as much as 3.3 percent to 285.2 yen a kilogram ($2,884 a metric ton) on the Tokyo bourse, the highest level for a most-active contract since March 13. Futures traded at 279.8 yen at 10:16 a.m., paring this year’s losses to 7.5 percent.
Thai rubber free-on-board rose 0.3 percent to 89.10 baht ($3) a kilogram yesterday, the highest level since March 12, according to the Rubber Research Institute of Thailand. It was a 13 percent rebound from this year’s low of 79 baht reached on April 19. The nation, the biggest rubber producer, extended curbs on exports by 60 days to the end of May to boost prices, Deputy Farm Minister Yuttapong Charasathien said April 1.
“Futures in Tokyo corrected higher as the market is undervalued compared with Thai cash prices,” Hideshi Matsunaga, an analyst at broker ACE Koeki Co. in Tokyo, said by phone today.
Thailand aims to lower shipments of rubber by 10 percent through May to help support prices, Yuttapong said on April 11. The government has no immediate plan to sell rubber from stockpiles, he said.
Rubber for delivery in September on the Shanghai Futures Exchange lost 0.6 percent to 20,380 yuan ($3,318) a ton.
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