SINGAPORE: Japanese rubber futures rose on Monday, supported by weather-related supply concerns in key producing regions and firmer oil prices.
The Osaka Exchange (OSE) rubber contract for January delivery was up 5 yen, or 1.58 percent, at 321.8 yen (UDD2.19) per kg.
The rubber contract on the Shanghai Futures Exchange (SHFE) for January delivery rose 265 yuan, or 1.69 percent, to 15,905 yuan (USD2,223.85) per metric ton.
The most active October butadiene rubber contract on the SHFE gained 310 yuan, or 2.65 percent, to 12,010 yuan per ton. Top rubber producer Thailand’s meteorological agency warned of heavy rains and accumulations that may cause flash floods and overflows from August 25-27. Vietnam and China braced for Typhoon Kajiki, with Vietnam announcing plans to evacuate more than half a million people, while China’s weather agency forecast heavy rainfall and strong winds in the Hainan province. Vietnam is a major rubber producer, and Hainan is the largest natural rubber producing area in China. Prices drifted last week amid concerns over weak global tyre demand, as well as persistent overcapacity and high inventory levels in China, Japan Exchange Group said in a report on Monday.
Broadly, oil prices edged up following Ukrainian attacks on Russia, raising concerns over potential disruptions to Russian oil supplies. Natural rubber often takes direction from oil prices as it competes for market share with synthetic rubber, which is made from crude oil. Meanwhile, the dollar gained 0.3 percent to 147.26 yen.
A weaker Japanese currency makes yen-denominated assets more affordable to overseas buyers. The front-month rubber contract on Singapore Exchange’s SICOM platform for September delivery last traded at 171.4 US cents per kg, up 0.9 percent.
Comments
Comments are closed for this article.