Japanese rubber futures drop

SINGAPORE: Japanese rubber futures declined on Friday but gained for the week, as investors weighed supply concerns against an uncertain economic outlook for top consumer China.

The Osaka Exchange (OSE) rubber contract for May delivery closed down 4.1 yen or 1.12% at 363.0 yen ($2.43) per kg. On the other hand, the May rubber contract on the Shanghai Futures Exchange (SHFE) rose 160 yuan, or 0.88%, to 18,260 yuan ($2,526.74) per metric ton.

For the week, the OSE contract climbed 1.82% and the SHFE contract rose 4.61%. “This week was a mixed bag,” said Farah Miller, founder of independent rubber-focused data firm Helixtap Technologies. While some flooding in the south of Thailand supported Thai rubber prices, the rains were largely restricted to the southern region and were “unlikely to have too much significant impact” on production compared to earlier this year, Miller said.