SINGAPORE: Japanese rubber futures rose for a seventh straight session on Monday, boosted by a persistently weak yen.
The Osaka Exchange (OSE) rubber contract for April delivery was up 0.6 yen, or 0.18 percent, at 325.1 yen (USD2.10) per kg. The rubber contract on the Shanghai Futures Exchange (SHFE) for January delivery rose 30 yuan, or 0.2 percent, to 15,315 yuan (USD2,155.89) per metric ton.
The most-active January butadiene rubber contract on the SHFE fell 15 yuan, or 0.14 percent, to 10,455 yuan per ton. The yen languished near the 155 per-dollar level, leaving traders alert to the threat of intervention from Japanese authorities to stem the yen’s decline.
A weaker Japanese currency makes yen-denominated assets more affordable to overseas buyers. Oil prices dipped as loadings resumed at a key Russian export hub following a Ukrainian attack last week. Natural rubber often takes direction from oil prices as it competes for market share with synthetic rubber, which is made from crude oil. Top rubber producer Thailand’s meteorological agency warned of heavy rains and accumulations that may cause flash floods and overflows from November 18-22.
Rubber prices saw additional support last week from improved October vehicle sales in China, Japan Exchange Group said in a report on Monday, adding that prices were expected to remain range-bound, with the forward curve remaining mostly flat across exchanges.
Automobile sales could influence the intensity of automobile manufacturing, which involves using rubber-made tyres.
The front-month rubber contract on Singapore Exchange’s SICOM platform for December delivery last traded at 172.7 US cents per kg, up 0.4 percent.
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