Japanese rubber futures rise on yen weakness

Japanese rubber futures ended daytime trade higher on Monday, buoyed by continued weakness in the yen, though relatively small disruptions to supply in producing areas capped gains.

The Osaka Exchange (OSE) rubber contract for May delivery was up 1.1 yen, or 0.33 percent, at 332.8 yen (USD2.12) per kg.
The rubber contract on the Shanghai Futures Exchange (SHFE) for May delivery dipped 20 yuan, or 0.13 percent, to 15,250 yuan (USD2,166.22) per metric ton.
The most-active February butadiene rubber contract on the SHFE rose by 180 yuan, or 1.63 percent, to 11,230 yuan per metric ton. The yen traded near an 11-month low against the US dollar at 157.37 yen per dollar.
A weaker currency makes yen-denominated assets more affordable to overseas buyers. Top rubber producer Thailand’s meteorological agency warned of heavy rains from December 25-27. Japan’s Nikkei climbed 1.9 percent as yen weakness promised to boost export earnings for Japanese corporates.
Oil prices were up after the US intercepted another Venezuelan oil tanker over the weekend, raising fresh supply uncertainty. Natural rubber often takes direction from oil prices as it competes for market share with synthetic rubber, which is made from crude oil.