SINGAPORE/TOKYO: Japanese rubber futures closed higher for a third consecutive session on Thursday, reversing early losses on a technical rebound, while higher oil prices lent support. The Osaka Exchange (OSE) rubber contract for September delivery rose 5 yen or 1.56%, at 326.2 yen ($2.16).
The rubber contract on the Shanghai Futures Exchange (SHFE) for September delivery rose 85 yuan to finish at 14,655 yuan ($2,027.81) per metric ton.
Profit-taking occurred on last Friday and this Monday, but the sharp sell off seems overdone and there may be room for some technical rebound, said Farah Miller, CEO of Helixtap Technologies, an independent rubber-focused data company. Oil prices edged up as investors reassessed the latest data on US crude oil and gasoline inventories and returned to buying mode. Natural rubber often takes direction from oil prices as it competes for market share with synthetic rubber, which is made from crude oil.
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