Benchmark Tokyo rubber futures ended higher on Thursday, supported by a weaker yen against the dollar and strength in Shanghai futures. "Despite the gains, the worries over weak fundamentals remained, as rubber stockpiles are pretty high," said a Japanese trading source. Crude rubber inventories at Japanese ports stood at 16,606 tonnes as of April 20, up 1.5 percent from the last inventory date, data from the Rubber Trade Association of Japan showed on Thursday.
TOCOM has been trading below the 200-yen level since late January amid worries over sluggish demand and high inventories. The Tokyo Commodity Exchange rubber contract for October delivery finished 1.2 yen higher at 192.9 yen ($1.76) per kg after touching 194.3 yen earlier, near a 1-1/2 month high hit on Tuesday.
The most-active rubber contract on the Shanghai futures exchange for September delivery rose 70 yuan to finish at 11,680 yuan ($1,835) per tonne. The front-month rubber contract on Singapore's SICOM exchange for June delivery last traded at 142.30 US cents per kg, down 0.3 cent. The dollar held firm on Thursday underpinned by gains in long-term US Treasury yields and investors focused on US consumer price data later in the day that could show inflation rising. A weaker yen makes commodities denominated in the Japanese currency cheaper for holders of other currencies.