SINGAPORE: Japanese rubber futures gained for a second straight session on Wednesday amid higher oil prices and weather concerns in top producer Thailand, while expansion plans by Chinese and Japanese automakers further boosted sentiment.
The Osaka Exchange (OSE) rubber contract for August delivery closed up 0.5 yen, or 0.17%, at 299.9 yen ($2) per kg. The rubber contract on the Shanghai Futures Exchange (SHFE) for May delivery rose 35 yuan to finish at 13,805 yuan ($1,917.55) per metric ton.
Oil prices rebounded on Wednesday amid output cuts by major producers. Natural rubber often takes direction from oil prices as it competes for market share with synthetic rubber, which is made from crude oil. Thailand’s meteorological agency has warned of very hot weather in upper Thailand from March 6-8, and summer storms in the region from March 8-10, potentially causing crop damage.
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