SINGAPORE: Japanese rubber futures climbed on Friday and were set for a monthly gain, as worsening weather in top producer Thailand sparked supply concerns, outweighing a firmer yen.
The Osaka Exchange (OSE) rubber contract for July delivery ended daytime trade 6.3 yen higher, or 1.62%, at 394.4 yen ($2.55) per kg. The contract has risen 5.31% so far this month.
Recent rainfall in southern Thailand has hampered production ahead of the wintering season, according to an analyst. Rubber crops usually undergo a wintering season of low production from February to May before a peak harvesting period that lasts until September.
Thailand’s northeast monsoon prevailing over the Gulf and southern parts will strengthen with more rains and isolated heavy rains, the country’s meteorological department said in a note.
The yen was last 0.34% lower at 154.84 yen, although it is set to gain 1.6% this month, its best January performance in seven years. A stronger Japanese currency makes yen-denominated assets less affordable to overseas buyers. Japan’s benchmark Nikkei average closed up 0.15% at 39,572.49 on Friday. Meanwhile, the global car industry is in the firing line of US President Donald Trump’s tariff threats against Canada and Mexico.
The automobile industry accounted for imports of more than $202 billion from Canada and Mexico combined in 2024. Automobile sales could influence the intensity of automobile manufacturing, which involves using rubber-made tyres.
Moreover, Trump on Thursday warned BRICS member countries, which includes China, from replacing the US dollar as a reserve currency by repeating a 100% tariffs threat. The February front-month rubber contract on the Singapore Exchange’s SICOM platform last traded at 196 US cents per kg, down 0.7%.
Comments
Comments are closed for this article.