Japanese rubber futures snaps losses on weather-related supply disruption

SINGAPORE: Japanese rubber futures snapped the previous session’s losses on Tuesday, as worries over a supply shortage from top producers Thailand and Indonesia spurred prices to two-week highs, while promising sales data from the world’s largest electric-vehicle maker buoyed sentiment.

The Osaka Exchange (OSE) rubber contract for November delivery was up 9.6 yen, or 2.29percent, at 429 yen (USD2.69) per kg, its highest since May 14.

The rubber contract on the Shanghai Futures Exchange (SHFE) for June delivery rose 205 yuan, or 1.15percent, to 18,005 yuan (USD2,662.99) per metric ton. The contract has also reached its highest since May 14. The most active June butadiene rubber contract on the SHFE gained 45 yuan, or 0.31percent, to 14,555 yuan per metric ton.

On Tuesday, Japanese Finance Minister Satsuki Katayama said the authorities stood ready to respond in the currency market as needed, as the yen, which last traded at 159.67 per dollar, eyed the 160 level, widely seen by markets as a trigger for intervention.

A stronger currency makes yen-denominated assets less affordable to overseas buyers. Weather disruptions in the world’s top two rubber producers are expected to further crimp supplies, supporting prices. * Top rubber producer Thailand’s meteorological agency warned of very heavy isolated rains in the south of the country, which may cause flash floods from June 2-7.

Meanwhile, Indonesia’s meteorological agency is predicting early dryness and less-than-expected rainfall for June. Chinese EV giant BYD, the world’s largest EV maker, snapped its longest streak of declining sales in May, according to Reuters calculations based on a stock filing on Monday.

Vehicle sales globally grew 0.3percent from a year earlier to 383,453 units last month following eight months of sales contraction, while production rose for the first time since July 2025, climbing 8.8percent year-on-year in May.

The front-month rubber contract on Singapore Exchange’s SICOM platform for July delivery last traded at 234.2 US cents per kg, up 2.1percent as of 0700 GMT.