SINGAPORE: Japanese rubber futures fell for the fourth straight session on Thursday to close at their lowest in two weeks, weighed down by worries over economic growth in the United States and China, while a stronger yen added pressure on prices.
The Osaka Exchange (OSE) rubber contract for February delivery closed down 4.1 yen, or 1.17%, at 347.5 yen ($2.43), its weakest level since Aug. 22.
The January rubber contract on the Shanghai Futures Exchange (SHFE) closed up 35 yuan, or 0.22%, at 347.5 yuan ($48.95) per metric ton. Despite supply remaining relatively less comfortable than during the usual peak season from September to January, expected gains in prices will be capped by fresh concerns over a potential US recession and dimmed prospects of a rebound in Chinese and US demand, said Jom Jacob, chief analyst at Indian analysis firm What Next Rubber. Top producer Thailand’s meteorological agency warned of heavy rains that may cause flash flood from Sept. 8-10.
Data on Wednesday showed US job openings dropped to a 3-1/2-year low in July, after a survey showed on Tuesday manufacturing remained in contraction territory.
Growth in China’s services sector activity slowed in August, a survey showed on Wednesday, while a previous survey had showed manufacturing activity sank to a six-month low. The yen was last 0.26% higher at 143.36 per dollar, after touching a one-month high earlier in the session.
A stronger Japanese currency makes yen-denominated assets less affordable to overseas buyers. The front-month October rubber contract on Singapore Exchange’s SICOM platform last traded at 177 US cents per kg, up 1%.
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