SINGAPORE: Japanese rubber futures rose on Wednesday, supported by a weaker yen and stronger oil prices. The Osaka Exchange (OSE) rubber contract for March delivery closed up 0.8 yen, or 0.19%, at 412.9 yen ($2.87) per kg.
The yen traded 0.14% weaker at 143.78 yen per dollar. A weaker currency makes yen-denominated assets more affordable to overseas buyers.
Oil prices jumped by over a dollar on rising concerns that Middle East tensions could escalate, potentially disrupting crude output from the region, after Iran’s biggest-ever military blow against Israel. Natural rubber often takes direction from oil prices as it competes for market share with synthetic rubber, which is made from crude oil.
The Shanghai Futures Exchange is closed from Oct. 1-7 for China’s National Day holiday. Trading will resume on Tuesday, Oct. 8. China hasn’t retaliated against US tariff hikes on Chinese imports, including electric vehicles (EVs), partly because of continued dialogue between the world’s two largest economies, US Treasury’s top economic diplomat said. China’s commerce ministry said it has asked the World Trade Organization (WTO) to rule on Canada’s steep tariffs on Chinese EVs and steel and aluminium products.
Automobile sales could influence the intensity of manufacturing, which involves using rubber-made tyres.
The price of Thailand’s benchmark export-grade smoked rubber sheet (RSS3) and block rubber were down 1.56% and 0.74%, to stand at 91.46 bah ($2.81) and 67.23 baht ($2.07), respectively.
Top rubber producer Thailand’s meteorological agency warned of heavy to very heavy rains from Oct. 1-7, leading to flash floods. The front-month rubber contract on Singapore Exchange’s SICOM platform for November delivery last traded at 213.3 US cents per kg, up 0.1%.
Comments