THAILAND: Japanese rubber futures rose for a third consecutive session on Wednesday, as weather-related disruptions across key producing regions and port delays tightened raw material supply, while rising oil prices added further support.
The Osaka Exchange (OSE) rubber contract for March delivery was up 3.3 yen, or 0.73 percent, at 457.8 yen (USD2.89) per kg. Ongoing weather challenges across key producing regions, including haze in Indonesia, unpredictable weather in upper Thailand and port congestion in Ivory Coast, have caused raw material shortages and delayed shipments, driving up prices, a Singapore-based trader said Floods and heavy rain damaged rubber plantations across eastern Thailand, affecting about 141,472 rai (22,636 hectares, or roughly 55,940 acres) in four districts between September 24 and 30 and impacting 7,679 growers, local media reported on Monday, citing the Rubber Authority of Thailand (RAOT).
Drainage efforts in the affected areas are ongoing, according to RAOT Oil prices climbed on Wednesday as the market weighed supply constraints from a storm heading for US oil-producing regions and attacks by Yemen’s Iran-backed Houthis on Saudi Arabia against increased supplies of Middle East crude.
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 December delivery was last flat at 259.1 US cents per kg, as of 0700 GMT.
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