SINGAPORE: Japanese rubber futures snapped a three-day losing streak on Tuesday, helped by a softer yen and strong physical rubber prices, although a weaker Shanghai market and news of little progress in Ukraine-Russia peace talks limited the gains.
The Osaka Exchange rubber contract for August delivery finished 4.3 yen, or 1.8%, higher at 244.9 yen ($2.08) per kg.
Raw material supplies in the physical market are tight, keeping prices firm, a Singapore-based trader said.
A weaker yen also supported rubber prices, he added.
The dollar traded at 117.99 yen, compared with 117.79 yen on Monday afternoon in Asia. A weaker yen makes yen-denominated assets more affordable when purchased in other currencies.
Russian and Ukrainian delegations held a fourth round of talks on Monday - by video link rather than in person - but no new progress was announced. Discussions are due to resume on Tuesday. The rubber contract on the Shanghai futures exchange for May delivery was down 265 yuan at 13,350 yuan ($2,093.17) per tonne. Earlier in the session, it touched the lowest since Sept. 27 at 13,310 yuan.
China’s stocks slumped to close at 21-month lows as surging coronavirus cases threatened the outlook for the world’s second-largest economy and as the central bank dashed expectations for a cut in a key lending rate.
China’s efforts to curb its largest COVID-19 outbreak in two years have forced companies from Apple supplier Foxconn to automakers Toyota and Volkswagen to suspend some operations, raising concerns over supply chain disruptions.
The front-month rubber contract on Singapore Exchange’s SICOM platform for April delivery last traded at 170.0 US cents per kg, down 2.5%.
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