Japanese rubber futures rise on firm demand, Thai supply concerns
SINGAPORT: Japanese rubber futures rose on Wednesday, buoyed by increased downstream demand as companies replenish inventories and concerns over heavy rains in top producer Thailand.
The Osaka Exchange (OSE) rubber contract for February delivery was up 1 yen, or 0.31percent, at 318.7 yen (USD2.16) per kg. The rubber contract on the Shanghai Futures Exchange (SHFE) for January delivery dipped 60 yuan, or 0.38percent, to 15,885 yuan (USD2,220.78) per metric ton. The most active October butadiene rubber contract on the SHFE lost 10 yuan, or 0.08percent, to 11,885 yuan per metric ton.
Downstream demand has increased as companies look to replenish inventories, though traders remain reluctant to sell at low prices, said Chinese commodity firm Zhuochuang Information. Meanwhile, top rubber producer Thailand’s meteorological agency, in its weather forecast for September 3-9, warned of heavy rains that may cause flash floods.
In currency markets, the yen was down over 0.1percent at 148.6 per dollar. A weaker currency makes yen-denominated assets more affordable to overseas buyers.
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