SINGAPORE: Japanese rubber futures recorded their fourth consecutive session of losses on Monday, weighed down by weaker global oil prices, but losses were checked by a weaker yen.
The Osaka Exchange (OSE) rubber contract for April delivery closed down 7 yen, or 1.87%, at 367 yen ($2.39) per kg.
The rubber contract on the Shanghai Futures Exchange (SHFE) for January delivery closed down 125 yuan, or 0.69%, to 17,910 yuan ($2,512.56) per metric ton.
China’s central bank launched a new lending tool on Monday to inject more liquidity into the market and support credit flow in the banking system ahead of the expiration of trillions of yuan in loans at the end of the year.
The most active November butadiene rubber contract on the SHFE closed down 110 yuan, or 0.73%, to 14,950 yuan ($2,097.30) per metric ton.
The yen weakened to 153.88 per dollar. The yen was last down about 0.7% on the dollar with a 6.4% drop through October - the largest of any G10 currency.
A weaker currency makes yen-denominated assets more affordable to overseas buyers.
The Nikkei share average ended the day up 1.82% to 38,605.53 after rising by as much as 2.2%. It opened 0.4% lower.
Oil prices tumbled more than $3 a barrel on Monday after Israel’s retaliatory strike on Iran.
Natural rubber often takes direction from oil prices as it competes for market share with synthetic rubber, which is made from crude oil.
Top rubber producer Thailand’s meteorological agency warned of heavy to very heavy rains that may cause flash floods from Oct. 28 -Nov. 3.
The front-month rubber contract on Singapore Exchange’s SICOM platform for November delivery last traded at 194.9 U.S. cents per kg, up 0.2%.
Comments
Comments are closed for this article.