TOKYO (Oct 20): Benchmark Tokyo rubber futures ended up 1.8 percent on Monday, after hitting a one-month high earlier on the back of a weaker yen and Thai government measures to help rubber farmers in the country.
The benchmark rubber contract on the Tokyo Commodity Exchange (TOCOM) for March delivery rose 3.4 yen to settle at 192.4 yen ($1.79) per kg after earlier jumping more than 3 percent to 195.4 yen, its highest since Sept. 18.
The contract has risen 5.4 percent during the past two sessions after Thailand's government announced a series of measures to support rubber farmers reeling from a slump in global prices to five-year lows.
The steps announced late on Thursday include nearly $1 billion to finance rubber purchases by the state-run Rubber Estate Organisation, which oversees stockpiles in the world's biggest producer and exporter of the commodity.
The dollar was up 0.4 percent at 107.345 yen on the back of strong U.S. consumer sentiment data, pulling further away from a five-week low of 105.195 hit the previous week.
"Large volumes of buyback orders and a weaker yen sent TOCOM to over 185 yen," said a Tokyo-based dealer. "But it has languished since then as Thai government's move does not improve the supply/demand in one day. It is also unsure how serious Thai government is."
The most-active rubber contract on the Shanghai futures exchange for January delivery rose 25 yuan to finish at 12,765 yuan ($2,085) per tonne.
The front-month rubber contract on Singapore's SICOM exchange for November delivery last traded at 155 U.S. cents per kg, up 2.4 cents. (1 US dollar = 107.2800 Japanese yen) (1 US dollar = 6.1236 Chinese yuan)