Japanese rubber futures rise on Thailand weather concerns
SINGAPORE: Japanese rubber futures rose on Tuesday, supported by supply concerns due to adverse weather in top producer Thailand.
The Osaka Exchange (OSE) rubber contract for January delivery was up 2 yen, or 0.62 percent, at 323 yen (USD2.19) per kg. The rubber contract on the Shanghai Futures Exchange (SHFE) for January delivery rose 45 yuan, or 0.28 percent, to 15,885 yuan (USD2,220.78) per metric ton. The most active October butadiene rubber contract on the SHFE lost 80 yuan, or 0.67 percent, to 11,845 yuan per ton.
Sentiment appears relatively stable, and the market is expected to remain in consolidation mode, according to a rubber trader quoted by Japan Exchange Group in a report on Monday.
Thailand’s meteorological agency warned of heavy rains and accumulations that may cause flash floods and overflows from August 25-27.
The dollar was flat against the yen at 147.82, after US President Donald Trump took the unprecedented action of firing Lisa Cook, the first African-American woman to serve as a Federal Reserve governor. Oil prices edged down as traders kept a close watch on developments in the Russia-Ukraine conflict.
Natural rubber often takes direction from oil prices as it competes for market share with synthetic rubber, which is made from crude oil. Elsewhere, Nissan Motor CEO Ivan Espinosa unveiled a restructuring plan that includes reducing global production capacity to 2.5 million vehicles from 3.5 million.
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