TOKYO, Aug 20 (Reuters) – Benchmark Tokyo rubber futures inched down 0.7 percent on Monday on profit-taking, after jumping as much as 6 percent in the previous session on the back of plans to curb exports by the top three rubber producers.
The contract jumped as high as 3.1 yen, or 1.4 percent, to an intraday high of 224.1 yen in early trade, getting support from the dollar’s recent strengthening against the yen and inflows into commodities, but later turned lower as Shanghai futures weakened.
The contract had hit a one-week high of 224.8 on Friday after Thailand, Indonesia and Malaysia agreed to cut down rubber trees and trim exports by 300,000 tonnes, or about 3 percent of global production this year, to shore up slumping global prices.
“TOCOM rubber was up in the morning and hit a high of 224.1 as funds moved into risk assets, including crude and precious materials, and on a stronger dollar,” a Japan-based broker said.
“But when the Shanghai market began trading weaker under pressure from weaker stock markets, that helped push down TOCOM rubber on profit-taking.”
The most-active rubber contract on the Shanghai futures exchange for January delivery fell 320 yuan to finish at 21,415 yuan ($3,400) per tonne.
The front-month rubber contract on Singapore’s SICOM exchange for September delivery was untraded on Monday due to a holiday. ($1 = 79.5200 Japanese yen) ($1 = 6.3585 Chinese yuan)
(Reporting by Osamu Tsukimori; Editing by Chris Gallagher)
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