SINGAPORE: Japanese rubber futures climbed for a second consecutive session on Monday, as supply disruptions from a major typhoon in China outweighed the top consumer’s faltering demand outlook, while firmer oil prices also lent support.
The Osaka Exchange (OSE) rubber contract for February delivery closed up 6.8 yen, or 1.94%, at 356.6 yen ($2.50) per kg.
The January rubber contract on the Shanghai Futures Exchange (SHFE) rose 560 yuan, or 3.43%, to finish at 16,880 yuan ($2,374.62) per metric ton.
Speculative funds on Friday longed their position in anticipation of a potential supply disruption arising from Typhoon Yagi, which hit Hainan, the country’s traditional rubber-growing region, said Jom Jacob, chief analyst at Indian analysis firm What Next Rubber.
Traders are expected to change their positions once they have a better assessment of damages, as preliminary reports indicate the key rubber-growing areas are outside the regions worst hit by the typhoon, while China’s demand outlook remains weak, Jacob said.
China’s exports likely grew at the slowest pace in four months in August, as cooling global demand and mounting trade barriers threaten to dim a bright spot in the world’s second-largest economy.
Meanwhile, the country’s consumer inflation accelerated in August to the fastest pace in half a year but the uptick was due more to higher food costs from weather disruptions than a recovery in domestic demand as producer price deflation worsened.
Oil futures jumped by a dollar on Monday as a potential hurricane system approached the US Gulf Coast, and markets recovered from a selloff following weaker-than-expected US jobs data on Friday.
Comments
Comments are closed.