BEIJING/TOKYO: Japanese rubber futures rallied for a third session on Wednesday, closing at its highest level in more than a month, as supply concerns and hopes for improving Chinese demand supported prices.
The Osaka Exchange (OSE) rubber contract for October delivery was up 1.24%, at 317.2 yen ($2.03) per kg, its highest closing since April 11. The rubber contract on the Shanghai Futures Exchange (SHFE) for September delivery was down 35 yuan, or 0.24%, at 14,430 yuan ($1,997.62) per metric ton.
Global supply of natural rubber should increase from now onwards as farmers in major producing countries are expected to restart tapping, but abnormal warm weather conditions and extended summer can have a negative bearing on supply, said Jom Jacob, the chief analyst at India-based analysis firm WhatNext Rubber Media International.
“Although the demand remains weak, there are fresh hopes of a potential regain in the demand from China on account of the fact that the Chinese government outlined a stimulus plan targeting a faster recovery of its sluggish economy,” he said.
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