Rubber prices continued to strengthen in early trading today, Thursday (2/11/2017), following Thailand's efforts to control supply.
The price of rubber for delivery in April 2018, the most active contract on the Tokyo Commodity Exchange (Tocom), gained 0.81 percent or 1.60 points to 200 yen per kilogram (kg) at 1031 GMT.
Earlier, rubber prices opened 0.5 points lower or 0.25% at 197.90 yen per kg after yesterday's trading closed 2.90% or 5.60 points to 198, 40 yen per kg.
As reported by Bloomberg, Thailand Rubber Trade Authority will continue cutting the supply of rubber in the fiscal year that began on October 1 to control the price.
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.
On the other hand, the Japanese yen appreciated to rise 0.25% or 0.28 points to 113.90 yen per US dollar at 10:53 pm.
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