Japanese rubber futures down on profit-taking

SINGAPORE: Japanese rubber futures edged down on Tuesday on profit taking in view of heightened uncertainty on rubber yields and top consumer China’s stockpiling decisions, although higher oil prices and a weaker yen limited losses.

The Osaka Exchange (OSE) rubber contract for November delivery was down 5.5 yen, or 1.54%, at 351 yen ($2.23) per kg as of 0220 GMT. The rubber contract on the Shanghai Futures Exchange (SHFE) for September delivery reopened after the Dragon Boat Festival holidays and was down 115 yuan, or 0.73%, at 15,720 yuan ($2,167.47) per metric ton. Attention should be paid to China’s stockpiling policy and the progress of rubber tapping in production areas post-holidays, China-based consultancy Longzhong said in a note, adding that rubber prices may mainly fluctuate in the near term.