Rubber prices managed to extend gains in late trading on the second day in a row on Thursday (15/3/2018), supported by further support speculation to prop up prices.
The price of rubber for delivery in August 2018 on the Tokyo Commodity Exchange (Tocom), closed up 0.26% or 0.50 points at 195.20 yen per kilogram (kg).
Rubber had flushed when it opened down 0.36% or 0.70 points at 194 yen, after closing up 1.25% or 2.4 points at 194.70 in Wednesday's trading (14/3).
According to analysts at Fujitomi's commodity brokerage, Kazuhiko Saito, rubber prices are buoyed by speculation that Thailand may take additional measures to support prices.
Indonesia, Malaysia and Thailand joined the International Tripartite Rubber Council (ITRC), previously agreed to re-implement the Agreed Export Tonnage Scheme or rubber export restrictions in December to March 2018 to hoist the price of the commodity.
Titus Suksaard, Governor of the Thai Rubber Authority, said in Bangkok that rubber export restrictions are progressing as planned.
Committees from 3 countries are reported to be meeting after the program ends to discuss whether the restriction measures will be extended, taking into account the current running price. "Exporters may decide to extend export restrictions beyond March," Saito continued, as quoted by Bloomberg.
On the other hand, the yen appreciated to rise 0.20% or 0.21 points to 106.12 per dollar at 14.38 pm, after expiring 0.23% appreciation at 106.33 in Wednesday's trading (14/3 ).
Added by Saito, the price gains were limited as survival concerns about stock expansion in Japan and China.
China's rubber reserves monitored by the Shanghai Futures Exchange rose 0.2% or 437.896 tons last week. The Japan Rubber Trading Association recorded that rubber inventories increased 2.2% to 15,206 metric tons.
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