Strengthening rubber prices continued in the third consecutive day of trade on Friday (16/06/2017), amid the weakening of the yen and the possibility of export cuts by some countries.
The price of rubber for delivery in November 2017, the most active contract on the Tokyo Commodity Exchange (Tocom), jumped 1.71 percent or 3.40 points to 202.80 yen per kilogram (kg) at 11.00 am.
In trading Thursday (15/6), the price of November 2017 contract closed skyrocketed 1.99% or 3.90 points to the position of 199.40 yen per kg.
Earlier this morning, rubber prices opened with a slight rise of 0.05% or 0.10 points at 199.50 yen per kg position. The price of rubber has posted a 7.9% rise this week, the biggest weekly gain since Jan. 27.
According to analysts of brokers Yutaka Shoji, Gu Jiong, rubber prices are driven by expectations of export trimming.
"The focus of investors is now on the meeting of some of the world's top exporting countries, there are expectations of delivery restrictions," said Gu Jiong, as quoted by Bloomberg.
Thai Rubber Trade Authority said that the country will hold talks with Indonesia and Malaysia to try to stabilize rubber prices. One that will be discussed in the meeting is a step of export restrictions.
Supporting the rubber, the yen continued to weaken 0.27%, or 0.30 points, to 111.24 yen per US dollar at 11:08 pm, after yesterday ended down 1.23% at 110.94.
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