Rubber price rally continued at the end of the third day of consecutive trading on Wednesday (6/9/2017), with gains of more than two percent.
The price of rubber for delivery in February 2018, the most active contract on the Tokyo Commodity Exchange (Tocom), closed up 2.14% or 4.90 points at 233.50 yen per kilogram (kg).
Previously, rubber prices opened with a 0.35% rise at 229.40 yen per kg position, after trading on Tuesday (5/9) ended up 0.31% at 228.60 position.
Gu Jiong, Analyst of Yutaka Shoji, said that the strengthening of rubber prices is still influenced by the optimism of the decline in rubber reserves in Qingdao.
"The decline (in Qingdao) is expected to increase imports," he said, as quoted by Bloomberg.
The rubber reserves in Qingdao fell 10.2% to 203,300 tonnes as of September 1, 2017. Natural rubber stocks fell 13% to 149,600 tonnes, a decline in the fifth week.
In addition, supply levels in Thailand have not fully recovered due to rain in some areas. The effects of continuous rain can inhibit rubber tapping activity.
Rubber is able to continue its rally today even as the appreciation of the Japanese yen currency continues amid geopolitical tensions.
The yen continued to appreciate 0.16%, or 0.17 points, to 108.64 per dollar at 14.28 pm, after appreciating 0.83% at 108.81 on Tuesday (5/9)
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