SINGAPORE: Japanese rubber futures climbed for a fifth straight session on Tuesday, helped by firmer raw material prices and a softer yen. The Osaka Exchange rubber contract for September delivery finished up 0.6 yen, or 0.2%, at 270.4 yen ($2.20) per kg.
“Raw material prices in Thailand are inching higher and higher... raw material output is not too healthy at this present moment,” a Singapore-based trader said, adding that floods in some southern provinces in Thailand would have impacted output.
Thai latex prices
The dollar traded at 122.85 yen, against 122.65 yen on Monday afternoon in Asia. A weaker yen makes yen-denominated assets more affordable when purchased in other currencies.
Oil prices rose on Tuesday as the United States and Europe planned new sanctions to punish Russia over alleged war crimes in Ukraine, raising concerns of tighter global supply, while Iran’s nuclear talks with world powers stalled.
Synthetic rubber is derived from crude, and a higher oil market serves as a driver for natural rubber prices as well. The natural rubber market also benefits from stronger oil prices as that could lead to a shift from synthetic rubber.
The front-month rubber contract on Singapore Exchange’s SICOM platform for May delivery last traded at 176.3 US cents per kg, down 0.4%.
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