SINGAPORE: Japanese rubber futures climbed on Tuesday after three sessions of decline on concerns of wet weather disrupting global supply and a batch of firmer Chinese economic data.
The May Osaka Exchange (OSE) rubber contract closed up 8.5 yen, or 2.35%, at 370.7 yen ($2.47) per kg.
The May rubber contract on the Shanghai Futures Exchange (SHFE) rose 500 yuan, or 2.74%, to finish at 18,765 yuan ($2,577.26) per metric ton. Floods impacted some production areas, with harvesting in domestic production region Yunnan gradually halting, causing raw material prices to rebound, said China’s state-backed Xinhua Information Service in a note.
It is expected that short-term rubber prices will be strong, and attention should be paid to the impact of subsequent weather changes on raw material supply, added Xinhua. Thailand’s meteorological agency warned of heavy to very heavy rains that may cause flash floods in the country’s southern region from Dec. 3-5. Southern Thailand saw “abundant rainfall almost the entire week” from Nov. 25-Dec. 1, resulting in “prolonged flooding in many places”, the agency said.
Comments
Comments are closed for this article.