SINGAPORE: Japanese rubber futures were rangebound on Monday in muted trading as markets remained closed in key consumer China. The Osaka Exchange (OSE) rubber contract for November delivery ticked down 0.7 yen, or 0.2%, at 356.5 yen ($2.27) per kg to close at a two-session low.
Financial markets in China are closed on Monday for a holiday. Rubber inventories in warehouses monitored by the Shanghai Futures Exchange were little moved from the last release on May 31, the exchange said on Friday.
China’s rubber imports in May fell month-on-month and year-on-year, preliminary trade data released by China’s General Administration of Customs showed. Ivory Coast’s natural rubber production rose over 30% year-on-year to reach a record 1.7 million metric tons in 2023, the head of the West African nation’s natural rubber association, Charles-Emmanuel Yace, said.
“Market sentiment remains bullish, supported by the weak JPY. The trading range next week is likely to be between 340 and 365 (yen), with some profit-taking expected following the recent strong rally,” Japan Exchange Group said in a technical analysis of the OSE November contract.
The yen weakened 0.26% to 157.13 against the dollar as the dollar was supported by a stronger-than-expected jobs report that cooled rate cut expectations, suggesting the US central bank could take more time before lowering rates. A weaker currency makes yen-denominated assets more affordable to overseas buyers.
Japan’s weather bureau said the El Nino phenomenon had ended and there was a 60% chance that La Nina would form towards the northern hemisphere autumn.
The European Commission is expected to disclose the tariffs it plans to impose on Chinese electric vehicles this week.
Comments
Comments are closed for this article.