Rubber Poised for Biggest Weekly Advance Since May on Oil, Yen
Rubber was set for the largest weekly gain 10 as oil climbed and a weakening Japanese yen improved the appeal of yen-denominated contracts.
Rubber for delivery in December on the Tokyo Commodity Exchange surged as much as 5.8 percent, the biggest advance for a most-active contract since May 10, to 262 yen a kilogram ($2,609 a metric ton), before trading at 256.2 yen at 10:46 a.m. local time. Futures gained 7.5 percent this week, also the most since the seven days ended May 10.
The yen extended losses against major currencies this week ahead of elections in Japan, weakening as much as 0.4 percent to 100.87 per dollar. Crude oil held near a 16-month high after employment data and company earnings burnished the U.S. economic outlook.
“Futures in Tokyo tracked a rally in oil and got a boost from the weaker yen,” said Hideshi Matsunaga, analyst at broker ACE Koeki Co. in Tokyo. “Gains in Shanghai’s rubber market also eased concern that China’s slowdown will curb demand.”
Rubber for January delivery on the Shanghai Futures Exchange rose 1.7 percent to 18,650 yuan ($3,037) a ton.
Thai rubber free-on-board was unchanged at 78.85 baht ($2.53) a kilogram yesterday, according to the Rubber Research Institute of Thailand.
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