Prompt Tokyo rubber futures contracts rose on Monday, bolstered by a weaker yen and concerns about tight supply while technical factors pushed contracts for the months ahead lower.
The benchmark November rubber contract on the Tokyo Commodity Exchange (TOCOM) settled down 1.1 yen per kg at 149.0 yen, the day's low after hitting a high of 151.6 yen.
The spot June contract finished up 1.7 yen, marking the day's largest gains, to finish at 151.4 yen.
The remaining months either rose by 0.1 to 0.6 yen or fell by 0.2 to 0.7 yen. "The contracts for the months further ahead fell on long liquidation due to technical factors," a Tokyo analyst said.
The rubber market has slipped into a backwardation, a state where spot prices are higher than those of forward months, reflecting the view that supplies are tight, he said.
Industry data issued last week by the Rubber Trade Association of Japan showed that crude rubber stocks at private Japanese warehouses fell to 15,268 tonnes at the end of May, down about 15.8 percent from a month, on healthy domestic demand and reduced Japanese imports.
On the supply side violence in parts of Thailand, the world's top producer and exporter, was also hurting rubber production. Thai Prime Minister Thaksin Chinaware said on Saturday that violence in the country's Muslin south had prevented rubber workers from going out to tap rubber at night, hurting production.
Rubber industry officials said output was bound to be hit in the three southernmost Thai provinces, which together produce about a 10th of the country's production. The dollar touched a high of 111.05 yen, up one yen from the days low in Tokyo and up from 110.14/19 in late US trade on Friday.
Turnover in TOCOM rubber was estimated at 5,115 lots, compared with 5,433 lots on Friday. Open interest stood at 33,045 lots as of the end of Friday, versus 32,581 lots on Thursday.
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