Japanese rubber futures drop on recovering supply
Japanese rubber futures fell for the fourth consecutive session on Tuesday, weighed down by recovering supply in Thailand and poor economic data in China, though losses were capped by a weak yen. The Osaka Exchange (OSE) rubber contract for April delivery was down 1.1 yen, or 0.4%, at 255.2 yen ($1.70) per kg at closing.
Japanese rubber futures fell for the fourth consecutive session on Tuesday, weighed down by recovering supply in Thailand and poor economic data in China, though losses were capped by a weak yen. The Osaka Exchange (OSE) rubber contract for April delivery was down 1.1 yen, or 0.4%, at 255.2 yen ($1.70) per kg at closing.
The benchmark contract gained 8.5% this month, posting its third consecutive monthly gain. The rubber contract on the Shanghai Futures Exchange (SHFE) for January delivery was down 50 yuan, or 0.4%, at 14,175 yuan ($1,937.22) per metric ton.
“With increased supplies emerging from Thailand, market expectations are being revised. Speculators are capitalising on profits and remaining on the sidelines,” said a Singapore-based trader. China’s manufacturing activity unexpectedly returned to contraction in October, an official factory survey showed, casting a cloud over recent indicators that showed a nascent recovery in the world’s second-largest economy.
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