TOKYO: Japanese rubber futures fell for a third straight session on Tuesday, weighed down by rising latex production as new tapping progressed in key producing regions, while a pullback in oil prices added further pressure.
The Osaka Exchange (OSE) rubber contract for December delivery was down 6.2 yen, or 1.47 percent, at 415.1 yen (USD2.55) per kg. The market was closed on Monday for a holiday.
The rubber contract on the Shanghai Futures Exchange (SHFE) for September delivery fell 140 yuan, or 0.83 percent, to 16,815 yuan (USD2,486.10) per metric ton.
The most-active September butadiene rubber contract on the SHFE lost 110 yuan, or 0.8 percent, to 13,555 yuan per ton.
New rubber tapping is underway in key producing areas, with latex production continuing to rise even as recent rainfall has slowed the pace, analysts from Chinese broker Shenyin & Wanguo Futures said in a note.
Rubber crops usually see a season of low production from February to May, before a peak harvesting period that lasts until September.
Oil prices fell on Tuesday, with markets weighing reports of mediation efforts between the US and Iran against an exchange of fresh attacks between the two and threats of a naval blockade of Saudi Arabia by Yemen’s Houthis.
Natural rubber often takes direction from oil prices as it competes for market share with synthetic rubber, which is made from crude oil.
Physical buying activity eased last week, while weaker-than-expected Chinese second-quarter GDP growth also weighed on sentiment, Japan Exchange Group said in a report on Monday.
The front-month rubber contract on Singapore Exchange’s SICOM platform for September delivery last traded at 214.2 US cents per kg, down 0.9 percent as of 0700 GMT.