Rubber prices closed stagnant at the end of trading (22/1/2018)

Rubber prices closed stagnant at the end of trading today, Monday (22/1/2018).

The price of rubber for delivery in June 2018, the most active contract on the Tokyo Commodity Exchange (Tocom), closed unchanged at the level of 209.20 yen per kilogram (kg).

Previously, June's rubber contract price opened up 0.24% or 0.50 point at 209.70 after trading ended 1.32% or 2.80 points at 209.20 yen per kg .

Rubber prices had strengthened during trading following the weakening Japanese yen exchange rate. However, the strengthening of prices thinned until finally closed stagnant today.

According to Gu Jiong, an analyst at brokerage firm Yutaka Shoji, eroding appreciation of Japanese yen has supported the strengthening of rubber.

The yen today was down 0.09% or 0.1 point to 110.87 per US dollar at 13.42 WIB, after opening with appreciation 0.19% at 110.60.

"In addition, rubber prices also gain support from the steps of a number of producing countries to limit exports," he continued, as quoted by Bloomberg.

As previously reported, Indonesia, Thailand and Malaysia agreed to again cut rubber exports by 350,000 tons by March 2018 at a meeting in Bangkok, Thailand on December 22, 2017.

The three countries, which are members of the International Tripartite Rubber Council (ITRC), agreed to re-implement the Agreed Export Tonnage Scheme or rubber export restrictions in December to March 2018 to raise the price of these commodities.

In the step of export restrictions in question, Indonesia gets a portion of 95,190 tons, while Thailand 234,810 tons and Malaysia 20,000 tons.