Tokyo rubber futures fell 2 percent on Friday on profit-taking after recent rises, but prices were likely to rebound next week after finishing above a strong support level of 310 yen, dealers said.
The benchmark rubber contract on the Tokyo Commodity Exchange <0#JRU:> for July delivery fell 7.4 yen to settle at 316.4 yen ($4.09) per kg.
“Players took profit ahead of the weekend. However, prices could rebound again next week as the Thai intervention and firm oil prices should lend support,” one dealer said.
Thailand said it would started immediately its plan to buy rubber from farmers at 120 baht per tonne to prop up prices. [ID:nL4E8CO34M]
Brent crude rose above $111 on Friday on hopes of steady demand growth as positive data from the United States boosted expectations of economic expansion gaining momentum in the world’s top oil consumer. [O/R]
($1 = 77.3100 Japanese yen)

Source: Reuters

Physical prices of Thai USS3 rubber rise in some markets for the third successive day and are little changed overall at THB112.81-THB113.89 versus THB111.19-THB114.09/kg Wednesday on lower supply as sellers hold back stocks in anticipation of higher prices. Thailand’s government has decided to buy USS grades from growers at THB120/kg to guarantee them better returns. Sellers are offering only limited volumes, in line with their immediate capital requirements; outside the central markets, factories are paying up to THB116/kg, says a natural rubber broker in Hat Yai. Sales in Thailand’s three main central markets total around 36.4 tons versus 45.5 tons Wednesday: 11.5 tons in Hat Yai, 4.9 tons in Surat Thani and 20 tons in Chandee.

Source: Dow Jones