SINGAPORE: Japanese rubber futures pared earlier losses on Wednesday on a weaker yen, while wet weather in top producer Thailand dampened seasonal harvesting supply prospects. The Osaka Exchange (OSE) rubber contract for November delivery closed up 3.9 yen, or 1.36%, at 290.9 yen ($2.02) per kg.
Due to increased rainfall in domestic and foreign production areas, the output of raw materials has been affected, Chinese commodities data provider Longzhong Information said in a note.
Top producer Thailand’s meteorological agency warned of heavy rains and accumulations could cause flash floods from June 7-10.
Still, natural rubber-producing areas in China and Vietnam have begun seasonal harvesting, said Chinese financial information site Tonghuashun Information. Rubber crops usually undergo a season of low production from February to May, followed by a peak harvesting period that lasts until September.
In currency markets, the dollar was up 0.2% at 144.23 yen. A weaker currency makes yen-denominated assets more affordable to overseas buyers.
Meanwhile, leading automakers have launched a price war that has further suppressed tyre demand, added Tonghuashun. In China, an intensifying auto industry price war has stoked fears of a long-anticipated shake-out in the world’s largest car market.
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