Japanese rubber futures rise on firm physical prices, weaker yen

SHANGHAI: Japanese rubber futures gained on Monday, tracking firm physical prices, while weaker yen and rising oil prices also provided support.

The Osaka Exchange (OSE) rubber contract for August delivery was up 5.9 yen, or 1.58percent, at 379.9 yen (USD2.38) per kg.

The rubber contract on the Shanghai Futures Exchange (SHFE) for May delivery fell 120 yuan, or 0.71percent, to 16,870 yuan (USD2,445.00) per metric ton.

The most active April butadiene rubber contract on the SHFE fell 95 yuan, or 0.6percent, to 15,665 yuan per metric ton. The price of Thailand’s benchmark export-grade smoked rubber sheet (RSS3)

and block rubber were higher at 82.02 baht per kg and 70.39 baht per kg, respectively.

Last week, Japanese and Chinese rubber exchanges ended higher on short covering, while Singapore rubber edged down on fresh buying interest, Japan Exchange Group said in a report on Monday.

Prices were mostly supported by high oil prices and tight supply due to the wintering season, the report added. Japan Finance Minister Satsuki Katayama said on Monday that the government is prepared to take decisive steps against volatility in foreign exchange and other financial markets, as the yen sank close to the psychologically important 160-per-dollar line.

Oil prices rose as investor focus returned to threats facing Middle East oil facilities, despite US President Donald Trump’s call for nations to help safeguard the Strait of Hormuz, a vital artery for global energy shipments.

The front-month rubber contract on Singapore Exchange’s SICOM platform for April delivery last traded at 196 US cents per kg, up 0.5 percent as of 0700 GMT.