Rubber prices gained momentum again and posted a gain in the end of the second day of trading in a row on Thursday (2/11/2017), along with Thailand's supply-cutting step.
The price of rubber for delivery in April 2018, the most-active contract on the Tokyo Commodity Exchange (Tocom), ended up 0.71 percent or 1.40 points at 199.80 yen per kilogram (kg).
Earlier, the rubber price opened with a weakening of 0.25% or 0.50 points at 197.90 after trading on Wednesday (1/11) ended up almost 3% rebound at 198.40.
Reported by Bloomberg, Thailand Rubber Trade Authority will continue trimming rubber supplies in the fiscal year that began on October 1 to control prices.
Thailand targets to trim rubber trees in an area of 64,000 hectares and encourage farmers to cultivate other crops. In the previous season, the government has also cut production on rubber plants in an area of 67,637 hectares.
"The current low price has the potential to make manufacturers to start reducing production," said Tataki Shigemoto, an analyst from JSC, as quoted by Bloomberg.
Meanwhile, the yen appreciated 0.25 percent or 0.28 points to 113.90 per dollar at 13:51 pm, after Wednesday (1/11) ended down 0.48 percent at 114.18.
In line with the strengthening of this commodity, Japan's benchmark stock index rose for a second day in a row. The Nikkei 225 index ended up 0.53% or 119.04 points at 22,539.12, after opening with a gain of 0.41% or 92.10 points at 22,512.18.
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