TOKYO (Rubber Country): Rubber futures gained further at Tokyo Commodity Exchange tracking US economic data releases on Thursday which showed mixed trends- while manufacturing activity improved, unemployment claims gained by 4000 raising hopes of QE3, analysts said.
On Friday trading, the most active TOCOM January futures gained one percent at 221.4 Yen per kg after falling initially to 218 Yen. The January contract had a high of 224 Yen immediately after the three major producers, Thailand, Indonesia and Malaysia announced measures to cut exports and trim production by cutting aging trees that would result in fall in production by 4,50,000 tonnes.
Fundamentals are not supportive for rubber although firm crude oil prices are providing firm support to the plantation crop in a crisis filled year, according to Sreekumar Raghavan, Chief Commodity Strategist at Commodity Online Group, promoters of Rubber Country.
Thailand has procured 80000 tonnes of rubber from farmers under a price support scheme while inventories in China’s bonded ware houses are expected to climb 250000 tonnes by the end of August.
Rubber inventories in the warehouses monitored by SHFE rose 10.4 per cent to 25736 tonnes last week.
Source: Rubber Country
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