SINGAPORE: Japanese rubber futures pared early losses to tick up on Monday on a weak yen, although muted demand and lower global oil prices capped gains.
The Osaka Exchange (OSE) rubber contract for November delivery closed up 0.3 yen, or 0.09%, at 327.8 yen ($2.05) per kg. The rubber contract on the Shanghai Futures Exchange (SHFE) for September delivery was down 95 yuan to finish at 14,905 yuan ($2,052.55) per metric ton.
The yen weakened to 159.94 per dollar earlier in the session, its lowest since April 29, when the yen touched a 34-year low of 160.245 leading to Japanese authorities spending some 9.8 trillion yen to support the currency. Weak demand condition is dominating sentiment in natural rubber both in physical and futures markets, said Jom Jacob, chief analyst at Indian analysis firm What Next Rubber, noting that “there is no indication of any imminent large-scale purchase by Chinese companies”.
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