SINGAPORE: Japanese rubber futures rose on Wednesday, buoyed by Higher synthetic rubber and oil prices, although gains were limited by a stronger yen.
The Osaka Exchange (OSE) rubber contract for December delivery was up 1.8 yen, or 0.57%, at 317.4 yen ($2.04) per kg, as of 0145 GMT.
The rubber contract on the Shanghai Futures Exchange (SHFE) for September delivery rose 85 yuan, or 0.59%, to 14,525 yuan ($1,996.37) per metric ton.
The most active September butadiene rubber contract on the SHFE was up 110 yuan, or 0.75%, at 14,800 yuan per metric ton.
Falling U.S. crude inventories caused oil prices to rebound on Wednesday after several days of decline, while expectations for a nearing ceasefire deal in the Middle East kept prices from continuing to climb.
Natural rubber often takes direction from oil prices as it competes for market share with synthetic rubber, which is made from crude oil.
Dollar/yen fell nearly 1% to 155.55 overnight and traded nearby at 155.78 early in the Asia session, as short-sellers bail out ahead of a central bank meeting.
A stronger Japanese currency makes yen-denominated assets less affordable to overseas buyers.
China’s top economic planner said on Tuesday it would support high-quality companies to borrow medium- and long-term foreign debt, to support the development of the real economy, according to an official statement published online. China is the world’s top rubber consumer.
Thailand’s meteorological agency warned of heavy rains and accumulations that may cause flash flood and overflows from July 23-29. Thailand is the world’s top rubber producer.
The front-month rubber contract on Singapore Exchange’s SICOM platform for August delivery last traded at 162 U.S. cents per kg, up 1.1%.
Comments
Comments are closed.