SINGAPORE: Japanese rubber futures bounced off a more than one-year low on Tuesday, underpinned by supply concerns sparked by worsening weather in top producer Thailand, while Asian markets clawed back some losses, improving sentiment.
The Osaka Exchange (OSE) September rubber contract for delivery ended daytime trade 5.9 yen higher, or 2.01%, at 299.9 yen ($2.04) per kg. The May rubber contract on the Shanghai Futures Exchange (SHFE) plunged 650 yuan, or 4.17%, to 14,930 yuan ($2,036.39) per metric ton. The most active May butadiene rubber contract on the SHFE slid 630 yuan, or 5.02%, to 11,925 yuan ($1,626.52) per metric ton.
On the supply side, Thailand’s meteorological agency warned of potential crop damage from April 12-14, with outbreaks of summer storms possible.
Broadly, Asian stocks bounced off more than one-year lows as Japan’s Nikkei rebounded 5.6%, with possible trade negotiations lifting sentiment. “Today, there seems to be some technical correction from yesterday’s big sell-off,” said Farah Miller, founder of independent rubber-focused data firm Helixtap Technologies.
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