SINGAPORE: Japanese rubber futures edged lower on Monday, tracking weaker Asian shares and lower raw material prices from top rubber producer Thailand, though support from a softer yen and hopes that the United States might be cutting some tariffs on China limited the downside.
The Osaka Exchange rubber contract for November delivery finished down 0.9 yen, or 0.4%, at 254.1 yen ($1.89) per kg.
Japan’s benchmark Nikkei share average was down 0.7% on Monday.
Thai latex prices hit their lowest level since Jan. 28 at 45.25 baht ($1.28) per kg on Monday.
Latex prices are low as it is “peak season” in Thailand, which means high supply these few weeks, said a Singapore-based trader.
Japan’s government cut its view on factory output for the first time in seven months in June due to the hit to manufacturers from China’s hard-handed pandemic response.
The dollar traded at 134.72 yen against 134.08 yen on Friday afternoon in Asia. A weaker yen makes yen-denominated assets more affordable when purchased in other currencies.
The rubber contract on the Shanghai futures exchange for September delivery was up 65 yuan to finish at 12,810 yuan ($1,916.29) per tonne. President Joe Biden’s administration is reviewing the removal of some tariffs on China and a possible pause on federal gas tax as the United States struggles to tackle soaring gasoline prices and inflation, two top officials said on Sunday.
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