JAKARTA: Japanese rubber futures gained for the second straight day and hit the highest in nearly two weeks on Wednesday as the yen weakened after news that the Japanese government was looking to buy back low-coupon super-long government bonds.
The Osaka Exchange (OSE) rubber contract for November delivery added 2.2 yen, or 0.74%, to 299 yen per kg as of 0734 GMT. The rubber contract on the Shanghai Futures Exchange (SHFE) for September delivery gained 115 yuan, or 0.83%, to 13,890 yuan per metric ton. The most active July butadiene rubber contract on the SHFE fell 40 yuan, or 0.36%, to 11,225 yuan per metric ton.
The price of Thailand’s benchmark export-grade smoked rubber sheet (RSS3) and block rubber rose 1.56% and 2.49% to stand at 77.05 and 62.19 baht respectively. The yen eased against the US dollar, making yen-denominated assets more affordable to overseas buyers. The Nikkei 225 Index gained 0.6% and logged its longest winning streak in about a month. Oil prices softened on Wednesday as markets were assessing the outcome of the US-China talks, yet to be reviewed by US President Donald Trump, with weak oil demand from China and OPEC+ production increases weighing on the market. Natural rubber often takes direction from oil prices as it competes for market share with synthetic rubber, which is made from crude oil.
Rubber crops usually undergo a season of low production from February to May before a peak harvesting period that lasts until September.
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