SINGAPORE: Japanese rubber futures ended the week slightly higher as the yen weakened, but gains were capped as thin year-end liquidity met easing supply concerns from improving weather in Thailand, keeping prices range-bound.
The Osaka Exchange (OSE) rubber contract for May delivery was up 0.4 yen, or 0.4 percent, at 331.7 yen(USD2.13) per kg. The contract ended the week up 0.27percent.
The rubber contract on the Shanghai Futures Exchange (SHFE) for May delivery dipped 215 yuan, or 1.4percent, to 15,190 yuan (USD2,157.52) per metric ton. The most-active February butadiene rubber contract on the SHFE fell 65 yuan, or 0.59percent, to 11,020 yuan per ton. Market sentiment eased off slightly on thin year-end liquidity, as futures outpaced muted physical demand, said Farah Miller, founder of independent rubber-focused firm Helixtap Technologies.
EUDR delays are expected to compress compliance premiums, while improving Thailand weather and selective China demand keeps prices range-bound, Miller added. The meteorological agency in top rubber producer Thailand said the northeast monsoon prevailing over the Gulf and the south would weaken, resulting in less rains in the south from December 18-24.