SINGAPORE: Japanese rubber futures rose for a second session on Monday amid muted rubber supply, while stronger domestic equities and a persistently weak yen supported sentiment.
The Osaka Exchange (OSE) rubber contract for September delivery closed up 6.2 yen, or 1.99%, at 317 yen ($2.05) per kg, the highest close since April 12. The rubber contract on the Shanghai Futures Exchange (SHFE) for September delivery fell 160 yuan to finish at 14,415 yuan ($1,990.31) per metric ton.
An unusual delay this year in the arrival of widespread and fairly good rains suggests that the restart of tapping could be delayed, said Jom Jacob, co-founder of India-based analysis firm What Next Rubber.
“It was earlier expected that a section of price-induced farmers would restart tapping earlier than usual. This is unlikely to happen as the extended summer season can backfoot the farmers from reopening the trees.”
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