SINGAPORE: Japanese rubber futures rose on Monday amid a weaker yen And severe weather conditions in top producer Thailand, although lower oil prices and geopolitical concerns surrounding key consumer China capped gains.

The Osaka Exchange (OSE) rubber contract for October deliverywas up 0.1 yen, or 0.03%, at 306.3 yen ($1.97) per kg as of 0157 GMT.

The rubber contract on the Shanghai Futures Exchange (SHFE) for September delivery was up 10 yuan, or 0.07%, at 14,215 yuan ($1,965.11) per metric ton.

The Japanese yen weakened 0.1% to 155.89 against the dollar. A weaker currency makes yen-denominated assets more affordable to overseas buyers.

Thailand’s meteorological agency warned of “severe weather conditions” in upper Thailand from May 13-15, potentially damaging crops.

China’s April vehicle sales rose 9.3% year-on-year, China Association of Automobile Manufacturers said.

Japanese rubber futures easier

Oil prices extended declines amid signs of weak fuel demand and as comments from U.S. Federal Reserve officials dampened hopes of interest rate cuts, which could slow growth and crimp fuel demand in the world’s biggest economy.

Natural rubber often takes direction from oil prices as it competes for market share with synthetic rubber, which is made from crude oil.

U.S. President Joe Biden is set to announce new China tariffs targeting strategic sectors, including a major hike in levies on electric vehicles, according to three people familiar with the matter.

China’s consumer prices edged up 0.3% in April year-on-year versus a rise of 0.1% in March. The producer price index dropped 2.5% in April, easing from a slide of 2.8% in March but extending a 1-1/2-year-long stretch of declines.

The front-month rubber contract on Singapore Exchange’s SICOM platform for June delivery last traded at 163.1 U.S. cents per kg, up 0.4%.