SHANGHAI: Japanese rubber futures declined on Friday, tracking weaker oil prices, though rising spot prices for Thai rubber curbed losses. The Osaka Exchange (OSE) rubber contract for November delivery ended down 2.8 yen, or 0.65percent, at 426.1 yen (USD2.66) per kg.
The contract has declined 0.81percent this week. The rubber contract on the Shanghai Futures Exchange (SHFE) for September delivery rose 165 yuan, or 0.95percent, to 17,565 yuan (USD 2,597.41) per metric ton. The most-active July butadiene rubber contract on the SHFE gained 140 yuan, or 1.06percent, to 13,370 yuan per ton.
Oil prices fell more than 2percent on Friday, extending losses from the previous session after US President Donald Trump cancelled plans to strike Iran, reducing fears of an escalation of hostilities following tit-for-tat attacks earlier in the week.
Natural rubber often tracks oil prices as it competes for market share with synthetic rubber, which is made from crude oil. The price of Thailand’s benchmark export-grade smoked rubber sheet (RSS3) was up 1.96percent at 104.02 baht (USD3.17) per kg.
Isolated, very heavy rains are expected to fall over north Thailand, Myanmar, Laos and north Vietnam from June 12-17, said Thailand’s meteorological department, raising supply concerns.
The front-month rubber contract on Singapore Exchange’s SICOM platform for July delivery last traded at 225.5 US cents per kg, up 0.5percent, as of 0700 GMT.
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