Japanese rubber futures extend gains on weaker yen, tight Thai supply

SHANGHAI: Japanese rubber futures rose for a second straight session on Tuesday, supported by a weaker yen and tighter supply from top producer Thailand.

The Osaka Exchange (OSE) rubber contract for October delivery closed 0.9 yen, or 0.22percent higher, at 415.1 yen (USD2.61) per kg. The rubber contract on the Shanghai Futures Exchange (SHFE) for September delivery rose 125 yuan, or 0.71percent, to 17,740 yuan (USD2,609.25) per metric ton.

The most-active June butadiene rubber contract on the SHFE fell 70 yuan, or 0.44 percent, to 15,755 yuan per ton. Heavy rains are expected in Thailand from May 19 to 21, according to the country’s meteorological agency, which could keep the supply firm.

Weather disruptions are forecast to ease from May 22, according to the meteorological agency. The yen has surrendered more than half of its gains since rising to 155 per dollar in early May after an intervention, coming close to the 160 mark that is seen as the Japanese authorities’ line in the sand for intervention.