Japanese rubber futures extend gains
SINGAPORE: Japanese rubber futures rose for the tenth consecutive session on Wednesday as a temporary truce in the US-China trade conflict outweighed a firmer supply outlook.
The Osaka Exchange (OSE) rubber contract for October delivery ended daytime trade 4.5 yen higher, or 1.43%, at 319.6 yen ($2.17) per kg. The rubber contract on the Shanghai Futures Exchange (SHFE) for September delivery rose 240 yuan, or 1.6%, to 15,235 yuan ($2,111.92) per metric ton. The most active June butadiene rubber contract on the SHFE surged 410 yuan, or 3.43%, to 12,380 yuan ($1,716.16) per ton. On Monday, the US and China agreed to pause their trade war for at least 90 days, with the US cutting tariffs on Chinese goods to 30% from 145% and China slashing duties on US imports to 10% from 125%. Reductions in tariffs have improved the outlook for the downstream demand of natural rubber, supporting prices, said Chinese financial information site Tonghuashun Information.
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