SHANGHAI: Japanese rubber futures rose on Wednesday, as a slump in the yen to its weakest level in almost four decades made yen-denominated assets cheaper for overseas buyers, while a further escalation in US-Iran hostilities lifted oil prices to a near six-week high.
The Osaka Exchange (OSE) rubber contract for December delivery was up 5.6 yen, or 1.35percent, at 420.7 yen (USD2.58) per kg. The rubber contract on the Shanghai Futures Exchange (SHFE) for September delivery rose 160 yuan, or 0.95percent, to 16,930 yuan (USD2,499.85) per metric ton.
The most active September butadiene rubber contract on the SHFE gained 195 yuan, or 1.44percent, to 13,765 yuan per metric ton. On Tuesday in New York trade, the yen hit 163.24 per dollar, its weakest point since late 1986, and it traded on the weak side of 163 through the Asia session. Oil prices extended gains to trade near six-week highs on Wednesday as fears of further supply disruptions intensified after US forces struck Iranian military targets for the 11th straight night, while oil tankers made U-turns in the Red Sea after warnings by Iran-backed Houthi militia.
Natural rubber often takes direction from oil prices as it competes for market share with synthetic rubber, which is made from crude oil. The front-month rubber contract on Singapore Exchange’s SICOM platform for September delivery last traded at 215.3 US cents per kg, up 0.7percent as of 0723 GMT.
Comments