SINGAPORE Japanese rubber futures dipped on Wednesday, tracking losses in the Shanghai market, as weaker crude prices and an anticipated hefty interest rate hike by the US Federal Reserve weighed on sentiment.
The Osaka Exchange rubber contract for February delivery was down 1.0 yen, or 0.4%, at 226.5 yen ($1.58) per kg as of 0200 GMT.
The rubber contract on the Shanghai futures exchange for January delivery was down 70 yuan, or 0.5%, at 13,015 yuan ($1,849) per tonne.
Japan’s benchmark Nikkei share average opened down 0.89%.
Oil prices slid, extending Tuesday’s losses, as investors braced for another aggressive rate hike from the Fed that they fear could lead to recession and plunging fuel demand.
The natural rubber market is hindered by weaker oil prices, as manufacturers are disincentivised from shifting away from synthetic rubber, which is derived from oil, thus driving natural rubber prices lower.
Rubber output in top exporter Thailand may be affected by forecasts for continued heavy rains and flood warnings across the country.
The front-month rubber contract on Singapore Exchange’s SICOM platform for October delivery last traded at 133.0 US cents per kg, down 0.6%.
Comments
Comments are closed.