Japan rubber futures close higher
SINGAPORE: Japanese rubber futures ended higher on Thursday, supported by higher oil prices and persistent concerns over adverse weather in top rubber-producing regions, while traders assessed yield prospects during the peak production season.
The Osaka Exchange (OSE) rubber contract for January delivery was up 2.7 yen, or 0.86%, at 316.5 yen ($2.15) per kg.
The rubber contract on the Shanghai Futures Exchange (SHFE) for January delivery rose 115 yuan, or 0.74%, to 15,720 yuan ($2,190.33) per metric ton.
The most active October butadiene rubber contract on the SHFE gained 220 yuan, or 1.9%, to 11,775 yuan per metric ton.
The market is paying close attention to weather conditions in production areas, the realisation of yields during the peak production season, and broader macroeconomic changes, said broker Everbright Futures.
Rubber crops usually undergo a season of low production during February to May, before a peak harvesting period that lasts until September.
Top rubber producer Thailand’s meteorological agency warned of heavy rains and accumulations that may cause flash floods and overflows from August 21-26.
Meanwhile, oil prices rose on signs of strong demand in the US, while uncertainty over Russia-Ukraine war lent support.
Natural rubber often takes direction from oil prices as it competes for market share with synthetic rubber, which is made from crude oil. The yen maintained its gains from earlier sessions, trading steady at 147.36 per dollar.
A stronger currency makes yen-denominated assets less affordable to overseas buyers.
The front-month rubber contract on Singapore Exchange’s SICOM platform for September delivery last traded at 170.2 US cents per kg, up 0.2%.
Read More: Here