Benchmark Tokyo rubber futures rose for a second straight day on Thursday, supported by the yen's decline to a seven-year low against the dollar and an agreement among top rubber producers to "manage" rubber exports to cap excess supply. The move came as Tokyo Commodity Exchange (TOCOM) futures, which set the tone for tyre rubber prices in Southeast Asia, still remained far below this year's high of 266.3 marked in January.
Top rubber producers Thailand, Indonesia and Malaysia have agreed to "manage" natural rubber exports to international markets to ensure there is no excess supply, they said in a joint statement on Thursday.
The three countries, which supply nearly 70 percent of the world's natural rubber, have also agreed not to expand new rubber planting areas beyond targets set earlier and to boost domestic rubber consumption by 10 percent annually. The Tokyo Commodity Exchange rubber contract for April delivery finished 1.0 yen higher at 206 yen($1.74) per kg, after rising to as high as 207 yen, the highest since a 3-1/2 month high of 208 yen hit on Monday.
Crude rubber inventories at Japanese ports stood at 10,394 tonnes as of November 10, down 4.7 pct from 10 days earlier, data from the Rubber Trade Association of Japan showed on Thursday. The new most-active rubber contract on the Shanghai futures exchange for May delivery rose 100 yuan to finish at 13,030 yuan ($2,128) per tonne. The front-month rubber contract on Singapore's SICOM exchange for December delivery last traded at 154.00 US cents per kg, down 0.7 cent.
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