SINGAPORE: Japanese rubber futures rose on Friday and notched a third straight weekly gain, buoyed by weather-related risks to supply from top producer Thailand. The Osaka Exchange (OSE) rubber contract for June delivery was up 2.1 yen, or 0.62 percent, at 340.9 yen (USD2.18) per kg. The contract gained 2.77 percent this week.
The rubber contract on the Shanghai Futures Exchange (SHFE) for May delivery rose 110 yuan, or 0.7percent, to 15,780 yuan (USD2,251.97) per metric ton.
The most-active February butadiene rubber contract on the SHFE rose 305 yuan, or 2.69 percent, to 11,635 yuan per ton. Prices of raw materials remain high due to the floods in southern Thailand and the Thai-Cambodian conflict, said Chinese financial information platform Jintou.
Top rubber producer Thailand’s meteorological agency warned of prevailing monsoons, which may lead to flash floods and overflows in the south of the country from December 26-28, where production is primarily concentrated.
Oil prices climbed on Friday after the United States ordered increased economic pressure on Venezuelan oil shipments and carried out airstrikes against Islamic State militants in northwest Nigeria. Natural rubber often takes direction from oil prices as it competes for market share with synthetic rubber, which is made from crude oil.
The yen rose to 156.23 against the dollar and was on course for a 1percent weekly rise, its biggest weekly gain since September.
A stronger Japanese currency makes yen-denominated assets less affordable to overseas buyers.
The front-month rubber contract on Singapore Exchange’s SICOM platform for January delivery last traded at 181.7 US cents per kg, up 1.1 percent as of 0700 GMT.
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