TOKYO: Japanese rubber futures rose on Thursday, surpassing the 300 yen level to a 3-1/2-week high, driven by concerns over supply tightness amid low domestic inventory and slow production in the world’s top producer Thailand due to heavy rainfall.
The Osaka Exchange (OSE) rubber contract for October delivery finished 1.6 yen, or 0.5%, higher at 300.6 yen ($2.1) per kg, marking its sixth consecutive daily gain and the highest close since April 14. But the rubber contract on the Shanghai Futures Exchange (SHFE) for September delivery fell 160 yuan to 14,710 yuan ($2,033) per metric ton.
“Poor weather drove up physical rubber prices in Thailand, prompting buyers to turn to cheaper OSE contracts,” a Tokyo-based trader said.
“Low domestic inventories — at just 4,000 metric tons, or half the normal level — further supported buying amid concerns over a potential supply-demand crunch,” he added.
Meanwhile, investors anxiously awaited planned trade talks between Washington and Beijing in Switzerland on Saturday, which could mark the first step in resolving a damaging trade war between the world’s top two economies.
US President Donald Trump is expected to announce a trade deal between the United States and Britain on Thursday, the New York Times reported on Wednesday.
Toyota Motor expects profit to decline by a fifth in the current financial year, it said on Thursday, as weakness in the US dollar and the impact of Trump’s tariffs weigh on the world’s largest automaker. The yen traded at 144.60 against the US dollar, compared with around 143.03 yen in late Wednesday trading in Asia.
Japan’s Nikkei share average rose on Thursday as chip-related shares tracked a rally in US semiconductor stocks. The front-month rubber contract on Singapore Exchange’s SICOM platform for June delivery last traded at 172.6 US cents per kg, up 0.3%.
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