Rubber Snaps Three-Day Losing Streak as Weaker Yen Boosts AppealAya Takada
Rubber ended a three-day losing streak as Japan’s currency weakened against the dollar after data showed the nation’s exports trailed estimates, boosting the appeal of yen-denominated futures.
The contract for March delivery added 0.4 percent to settle at 268.4 yen a kilogram ($2,737 a metric ton) on the Tokyo Commodity Exchange. The most-active contract advanced 1.1 percent last week.
Japan’s export growth slowed in September and the nation extended a record run of trade deficits, underscoring the challenge for Prime Minister Shinzo Abe in sustaining momentum in the world’s third-biggest economy. The Bank of Japan will continue pumping cash into the economy to spur inflation, Governor Haruhiko Kuroda said today. The yen weakened to 98.10 per dollar.
“A weaker yen gave support to futures,” said Takaki Shigemoto, an analyst at research company JSC Corp. in Tokyo. “The BOJ may add stimulus to bolster growth, which could weaken the currency further.”
Rubber for January delivery on the Shanghai Futures Exchange rose 0.8 percent to close at 20,605 yuan ($3,381) a ton. Thai rubber free-on-board fell 0.6 percent to 79.55 baht ($2.56) a kilogram today, the Rubber Research Institute of Thailand said.
Natural-rubber stockpiles monitored by the Shanghai exchange increased 9 percent to 140,445 tons, the highest level since January 2010, the bourse said on Oct. 18. Supply in China is increasing as domestic production expanded on good weather in Yunnan and Hainan provinces, Shigemoto said.
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