Japanese rubber futures log fourth straight weekly gain on worsening weather
SINGAPORE: Japanese rubber futures ended the week in the green on Friday on worsening weather in top producer Thailand, though gains were capped by the upcoming harvesting season and softer oil prices.
The Osaka Exchange (OSE) rubber contract for October delivery fell 1.9 yen, or 0.59%, to close at 320 yen ($2.23) per kg. However, the contract climbed 2.11% for the week.
The rubber contract on the Shanghai Futures Exchange (SHFE) for September delivery lost 350 yuan, or 2.35%, to 14,535 yuan ($2,019.03) per metric ton. Thailand’s meteorological agency warned farmers of possible crop damage, adding that heavy rains and accumulations may cause flash floods from May 23-27.
The current raw material output is temporarily low as May and June mark the transition periods for main production areas to start harvesting, said China International Capital Corp (CICC) Futures.
While raw material prices remain stable in the short term, the current supply-side pressure is gradually increasing, said Chinese rubber sales portal Natural Rubber Network.
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