Japanese rubber futures snap 10-day winning streak on trade uncertainty, supply outlook
SINGAPORE: Japanese rubber futures snapped a 10-day winning streak on Thursday, as market uncertainty surrounding China-US trade relations weighed on sentiment, while seasonal supply prospects also pressured prices.
The Osaka Exchange (OSE) rubber contract for October delivery ended daytime trade 2.9 yen lower, or 0.91%, at 316.7 yen ($2.18) per kg. The rubber contract on the Shanghai Futures Exchange (SHFE) for September delivery eased 65 yuan, or 0.43%, to 15,090 yuan ($2,093.80) per metric ton. The most active June butadiene rubber contract on the SHFE fell 40 yuan, or 0.33%, to 12,260 yuan ($1,701.12) per metric ton.
Prices were strongly elevated due to the pause in US-China tariffs, and Thursday’s decline is likely due to profit-booking as fundamental demand still looks muted, said Farah Miller, founder of independent rubber-focused data firm Helixtap Technologies.
On Monday, the US and China agreed to pause tariffs for at least 90 days.
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