March 19 (Bloomberg) -- Rubber rebounded from the biggest drop in almost eight months as Thailand said it would propose extending a reduction in shipments. The Japanese currency weakened, making yen-based contracts more attractive.
The contract for delivery in August gained 0.9 percent to 273.3 yen a kilogram ($2,863 a metric ton) on the Tokyo Commodity Exchange. Futures plunged 4.2 percent yesterday, the most since July.
Thailand, Indonesia and Malaysia, who represent 70 percent of global output, will meet in Phuket on April 10-12, Deputy Farm Minister Yuttapong Charasathien said today. The yen weakened for the first time in four days against the dollar, trading at 95.55, before a change of leadership at the Bank of Japan takes effect tomorrow amid expectations for policy easing.
“Thailand’s proposal to extend the export cut helped move the market,” Sean Kan, a commodity broker at Okachi & Co., said by phone from Tokyo. “If the three countries decide to extend the program, prices could rise further.”
The contract for September delivery on the Shanghai Futures Exchange gained 0.9 percent to close at 22,470 yuan ($3,615) a ton. Thai rubber free-on-board remained unchanged at 85.60 baht ($2.92) a kilogram today, the Rubber Research Institute of Thailand said on its website. That was the lowest level since November 2009, according to data compiled by Bloomberg.
--Editors: Jarrett Banks, Ovais Subhani