Japan rubber futures rebound
SINGAPORE: Japanese rubber futures rebounded on Tuesday from a two-week closing low on Monday as buying by funds boosted sentiment, while weather concerns in top producer Thailand also lent support. The Osaka Exchange (OSE) rubber contract for September delivery closed up 5.6 yen, or 1.79%, at 319.3 yen ($2.11) per kg. The rubber contract on the Shanghai Futures Exchange (SHFE) for May delivery rose 50 yuan to finish at 14,535 yuan ($2,013.88) per metric ton.
The recent volatility in OSE futures, driven by fund activity, is influencing sentiment, a Singapore-based trader said, adding the market is currently at a technical support level.
Thailand’s meteorological agency warned of severe weather conditions in upper Thailand from March 26-27, potentially causing crop damage. Oil was little changed, after rising in the previous session, as investors took a mixed view towards the loss of Russian refinery capacity following recent Ukrainian attacks, though a slightly weaker US dollar offered some support.
Natural rubber often takes direction from oil prices as it competes for market share with synthetic rubber, which is made from crude oil. Japan would not rule out any measures to rein in weakness in the yen, Finance Minister Shunichi Suzuki said, in the latest warning against speculators as the nation navigates a delicate period after last week’s historic shift away from years of easy policy.
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