SHANGHAI: Japanese rubber futures extended gains to a fourth straight session on Monday, supported by a jump in crude oil prices as peace talks between the United States and Iran stalled.
The Osaka Exchange (OSE) rubber contract for October delivery was up 1.5 yen, or 0.38percent, at 400.5 yen (USD2.51) per kg. The rubber contract on the Shanghai Futures Exchange (SHFE) for September delivery rose 75 yuan, or 0.44percent, to 17,225 yuan (USD2,522.44) per metric ton.
The most-active June butadiene rubber contract on the SHFE fell 270 yuan, or 1.71percent, to 15,500 yuan per ton.
Oil prices were up more than 1percent on Monday as peace talks between the US and Iran stalled while shipments through the Strait of Hormuz remained limited, keeping global oil supplies tight. Natural rubber often takes direction from oil prices as it competes for market share with synthetic rubber, which is made from crude oil. Hopes of reviving peace efforts receded over the weekend when US President Donald Trump scrapped a visit to Islamabad by his envoys Steve Witkoff and Jared Kushner.
Iranian Foreign Minister Abbas Araqchi shuttled to and from mediators Pakistan and Oman on Sunday before heading to Russia, where he is due to meet President Vladimir Putin.
Rubber inventories in warehouses monitored by the Shanghai Futures Exchange rose 1.2 percent week-on-week, the exchange said on Friday. Last week, global rubber futures ended higher across all exchanges, as commodity funds and speculators seemed to establish long positions, the Japanese Exchange Group said in a report.
Aggressive speculative buying was driven by investors banking on the fact that supply would ease in May as top producer Thailand begins its harvesting season, the group said.
The front-month rubber contract on Singapore Exchange’s SICOM platform for May delivery last traded 0.3percent higher at 212.4 US cents per kg as of 0700 GMT.