Japan rubber futures recover on global weather concerns

SINGAPORE: Japanese rubber futures regained their footing on Wednesday, buoyed by concerns of wet weather disrupting global supply, although fading enthusiasm from top consumer China’s stimulus measures capped gains.

The March Osaka Exchange (OSE) rubber contract closed up 10.4 yen, or 2.63%, at 406.0 yen ($2.73) per kg.

The January rubber contract on the Shanghai Futures Exchange (SHFE), however, fell 300 yuan, or 1.56%, to finish at 18,920 yuan ($2,679.36) per metric ton.

Raw material prices are currently high, as limited improvement in weather conditions across various production areas has restricted upstream output, with continuous rainfall affecting the rubber-tapping process, said Chinese futures site Beite Futures.