SINGAPORE: Japanese rubber futures were little changed on Tuesday but ended the quarter lower, as a softer Shanghai market amid concerns over a sluggish economy in top buyer China weighed on sentiment, while falling oil prices also added pressure.
The Osaka Exchange (OSE) rubber contract for March delivery was down 0.1 yen, or 0.03percent, at 305.7 yen (USD2.06) per kg. The contract ended the quarter down 1.26percent.
The rubber contract on the Shanghai Futures Exchange (SHFE) for January delivery fell 310 yuan, or 2.02 percent, to 15,030 yuan (USD2,110.36) per metric ton. China’s purchasing managers’ index (PMI) rose to 49.8 in September versus 49.4 in August, below the 50-mark separating growth from contraction. It suggested producers are waiting for further stimulus to boost domestic demand, as well as clarity on a US trade deal. Oil prices fell on Tuesday as another anticipated production increase by OPEC+ and the resumption of oil exports from Iraq’s Kurdistan region via Turkey reinforced the outlook for a looming supply surplus.
Natural rubber often takes direction from oil prices as it competes for market share with synthetic rubber, which is made from crude oil. The dollar slid 0.1percent to 148.46 yen. A stronger Japanese currency makes yen-denominated assets less affordable to overseas buyers.
The dollar was on the back foot in cautious trading as investors braced for a possible US government shutdown that would halt economic data releases, including the crucial jobs report later this week. * Japan’s Nikkei was up 0.1 percent.
The front-month rubber contract on Singapore Exchange’s SICOM platform for October delivery last traded at 171.3 US cents per kg, down 1.5 percent.
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