Japan futures hit 2-1/2-month high

SINGAPORE: Japan’s rubber market extended gains for a fifth session to touch a 2-1/2-month high on Thursday, driven by stronger Shanghai and raw material prices.

The Osaka Exchange rubber contract for July delivery finished 2.8 yen, or 1.1%, higher at 253.8 yen ($2.20) per kg, hitting the highest since Nov. 26.

“High Japanese rubber futures were supported by Shanghai’s continued uptrend,” a Singapore-based trader said.

“Raw material prices in Thailand are still going up with southern parts of the country entering wintering season, during which there will be slower output,” he added.

Wintering is when rubber trees temporarily slow latex production while they shed old leaves and grow new ones.

Thai rubber sheet prices hit 70.50 baht ($2.16) per kg on Thursday, the highest since June 2021.

The rubber contract on the Shanghai futures exchange for May delivery was up 165 yuan to finish at 14,775 yuan ($2,324.47) per tonne on Thursday.