Strengthening of observed rubber prices eroded in trading this morning, Tuesday (24/10/2017), in line with the appreciation of the exchange rate of the yen against the US dollar.
The price of rubber for delivery in March 2018, the most active contract on the Tokyo Commodity Exchange (Tocom), rose 0.20% or 0.40 points to 196.60 yen per kilogram (kg) at 1032 GMT.
Earlier, the rubber price opened with a 0.56% rebound or 1.10 points at 197.30 level after trading on Monday (23/10) ended down 0.46% at 196.20 level.
According to Gu Jiong, Analyst Yutaka Shoji, the positive movement of rubber prices is sustained by the weakening performance of the yen.
"Investors are also monitoring the impact on rubber from every development of China's economic policy," he said, as quoted from Bloomberg.
The performance of the yen has weakened about 1.2% over the past month, though this morning is observed to strengthen. The yen rose 0.14% or 0.16 points to 113.28 per dollar at 1038 GMT, after Monday (23/10) ended up 0.07% thin rebound at 113.44.
Meanwhile, according to the Association of Natural Rubber Producing Countries (ANRPC), the world rubber supply of 2018 is expected to exceed demand levels by 2%.
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