SINGAPORE: Japanese rubber futures ended almost flat on Friday, but dropped for the week, tracking a mostly lacklustre Shanghai market, while a firmer yen dragged down prices further. * Osaka Exchange’s rubber contract for November delivery finished relatively unchanged at 209.5 yen ($1.55) per kg but lost 1.5% for the week.
The OSE’s May contract expired at 205.0 yen per kg on Thursday. The rubber contract on the Shanghai futures exchange for September delivery rose 100 yuan to finish at 11,875 yuan ($1,718.00) per tonne. Japan’s benchmark Nikkei average closed up 0.37%.
“Most of the market is bearish. Any uplift in futures prices is likely coming from a technical bounce back after reaching support levels,” said Farah Miller, CEO of Helixtap Technologies, an independent rubber-focused data company.
Prices in Indonesia and Thailand are hovering around negative margin territory and it would be tough for producers if the market continues to weaken, she added.
China equities fell on Friday as investor sentiment was broadly subdued with market focus on the Sino-US tensions, despite a rally by semiconductor shares following US-based Nvidia’s share price surge overnight. The Japanese yen strengthened 0.22% against the dollar to 139.76, making yen-dominated assets less affordable when purchased in other currencies.
Rubber output may be affected in top-exporter Thailand as the southwesterly monsoon approaches. The National Water Command Centre (NWCC) issued flash flood warnings for some provinces in all regions from Saturday until Thursday (May 27 to June 1). Asia’s stock markets were cautiously higher on Friday, with Japan leading gains, while the dollar took a breather as investors hoped for an eleventh-hour deal to avoid a US debt default.
Comments
Comments are closed.