TOKYO: Japanese rubber futures edged higher on Monday, supported by a rebound in oil prices and a near 40-year low in the yen, though improved supply capped gains.
The Osaka Exchange (OSE) rubber contract for December delivery
was up 0.4 yen, or 0.1 percent, at 410.4 yen (USD2.54) per kg.
The rubber contract on the Shanghai Futures Exchange (SHFE) for September delivery rose 45 yuan, or 0.27 percent, to 16,660 yuan (USD2,452.56) per metric ton.
The most active September butadiene rubber contract on the SHFE fell 150 yuan, or 1.25 percent, to 11,875 yuan per metric ton.
The Japanese yen last traded at 161.75, continuing to languish near a 40-year low.
A weaker currency makes yen-denominated assets more affordable to overseas buyers.
Oil prices rose following days of tit-for-tat strikes by the US and Iran that underscored the fragility of their interim peace deal and again slowed energy shipping through the Strait of Hormuz.
Natural rubber often tracks oil prices as it competes for market share with synthetic rubber, which is made from crude oil.
Major Southeast Asian producing regions, including Thailand, Indonesia, and Vietnam, have ramped up production following the wintering season, Japan Exchange Group said in a report on Monday.
The front-month rubber contract on Singapore Exchange’s SICOM platform for July delivery last traded at 209 US cents per kg, up 0.2 percent, as of 0721 GMT.
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