Tokyo rubber futures were little changed in slow trades on Thursday, with investors divided over the outlook for rubber supply. While the world's No 1 and No 2 natural rubber producers Thailand and Indonesia have shown their intention this week to curb exports, investors are concerned about a glut of supply, reflected in rising Japanese inventories.
Benchmark Tokyo Commodity Exchange rubber for May delivery rose to 205.5 yen per kg, up 0.2 percent or 0.5 yen from the previous close. On Wednesday, the May contract rose as high as 212.5 yen, its highest since November 14, before profit taking set in. Profit taking appeared to continue curbing any gains above 210 yen.
Having fallen to 185.5 yen in late November, a one-year trough for any benchmark contract, the contract's rally to that level means a 13-percent gain since then. The nearby December contract, set to expire on December 22, was 0.2 yen higher at 190 yen and January contract was down 0.1 yen at 193.8 yen.
The Indonesian Rubber Association (Gapkindo) said late on Wednesday that it would urge other Southeast Asian rubber producers to slash exports by at least 10 percent next year to help push up prices. The news came after the association's own decision the previous day to cut rubber exports by 10 percent in 2007.
Separately, Thailand said on Wednesday it was prepared to suspend rubber exports for a few weeks if prices continue falling this month. "Exporters agreed with the ministry's proposal to stop offering prices for a few weeks if prices continued to fall unreasonably in December," Adisak Sreesunpagit, department director at the Agriculture Ministry, said in an interview with Reuters.
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