Japanese rubber futures up

SINGAPORE: Japanese rubber futures rose for the fifth straight session on Tuesday, tracking higher synthetic rubber prices, while concerns over wet weather in top producer Thailand also lent support to the market. The Osaka Exchange (OSE) rubber contract for January delivery closed up 1.3 yen, or 0.4%, at 323.3 yen ($2.19) per kg. The January rubber contract on the Shanghai Futures Exchange (SHFE) rose 125 yuan, or 0.79%, to finish at 16,005 yuan ($2,231.16) per metric ton.

The most active September butadiene rubber contract on the SHFE was up 250 yuan, or 1.78%, to 14,275 yuan ($1,989.99) per ton. Rubber prices are rising due to increased raw material costs and steady market demand amid slowing supply, said a Singapore-based trader. Thailand’s meteorological agency warned of heavy rains that may cause flash flood and overflows from Aug. 12-18. The dollar was in limbo as investors waited to see how US economic data affected the chance of outsized rate cuts, while a rally in Japanese stocks helped staunch the bleeding in yen carry trades.