SINGAPORE: Japanese rubber futures rose for a second session to close at a three-week high on Tuesday, as traders tracked higher physical prices in top producer Thailand amid poor harvesting weather, while a weaker yen also lent support.
The Osaka Exchange (OSE) rubber contract for October delivery closed up 5.3 yen, or 1.72%, at 313.3 yen ($2.00) per kg, the highest close since April 23.
The rubber contract on the Shanghai Futures Exchange (SHFE) for September delivery rose 65 yuan to finish at 14,310 yuan ($1,977.12) per metric ton.
Rubber prices are likely to remain high as harvesting is affected by weather disturbances, pushing Thailand raw materials prices higher, while downstream tyre factories in China have gradually resumed production after the long holiday, China-based consultancy Longzhong said in a note on Tuesday.
The price of Thailand’s benchmark export-grade smoked rubber sheet (RSS3) was at 83.92 Thai baht ($2.28) per kg on a free-on-board basis on Tuesday, 1.02% higher than previous session.
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