Rubber rallied the most in three weeks as a smaller-than-expected current-account surplus weakened Japan’s currency, increasing the appeal of contracts in yen, and a rebound in China’s trade boosted the demand outlook.
Rubber for delivery in January on the Tokyo Commodity Exchange surged 4 percent to 256.2 yen a kilogram ($2,660 a metric ton), the biggest advance for the most-active contract at close since July 17. Futures have lost 15 percent this year.
The yen retreated from a seven-week high against the dollar after Japan reported the current-account surplus was 336.3 billion yen in June, compared with the median estimate for 400 billion yen. China’s exports and imports rebounded more than estimated in July, adding to signs that the world’s biggest rubber consumer is stabilizing following a two-quarter slowdown.
“China’s trade data and weakening yen had positive impacts on rubber,” said Ryuta Imazeki, an analyst at Okachi & Co. “Trading is quite thin with the Singapore market on holiday.”
Rubber for delivery in January surged 4.3 percent to close at 19,070 yuan ($3,118) a ton on the Shanghai Futures Exchange.
Thai rubber free-on-board gained 1 percent to 78.50 baht ($2.51) a kilogram today, according to the Rubber Research Institute of Thailand. Rains spread across 80 percent of the Thai South, the country’s main plantation area, disrupting tapping and supplies, it said today.