Thailand`s cabinet on Tuesday approved measures, including an extension to a 10 billion baht (US$295 million) loan programme for agricultural cooperatives for three more years, another 10 billion baht loan programme for rubber businesses.

“News on Thailand`s plan to shore up rubber prices was the first good news in a while and that helped boost market sentiment,” said Toshitaka Tazawa, analyst, Fujitomi Co.

The Tokyo Commodity Exchange (TOCOM) rubber contract for November delivery finished up 10.2 yen, or 5.5%, at 195.5 yen (US$1.77) per kg. Earlier in the session, it touched 196.5 yen, its highest since June 2.

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The most-active rubber contract on the Shanghai futures exchange for September delivery also surged 360 yuan to finish at 12,900 yuan (US$1,899) per tonne.

“But I do not know how long this bullish trend will last as Thailand was supposed to sell remaining inventories by end-May, but it didn`t and changed its policy, instead,” he said.

Thailand, the world`s biggest rubber producer, said in March that it would aim to offload remaining 107,000 tonnes of rubber stockpiles by end-May.

The front-month rubber contract on Singapore`s SICOM exchange for July delivery last traded at 144.6 US cents per kg, up 6.2 US cents.

(US$1 = 33.9300 baht)
(US$1 = 110.1700 yen)
(US$1 = 6.7930 Chinese yuan)

https://globalrubbermarkets.com/49655/tocom-rubber-jumps-thailands-plan-stabilise-rubber-prices.html