SINGAPORE: Japanese rubber futures jumped to their highest in seven years on Monday, with prices rising 2% as weather concerns in top producer Thailand and strong global demand prospects boosted investor sentiment.
The Osaka Exchange (OSE) rubber contract for August delivery closed up 6.1 yen, or 1.9%, at 319.1 yen ($2.17) per kg, after hitting its highest since February 2017 at 321 yen earlier in the session. The rubber contract on the Shanghai Futures Exchange (SHFE) for May delivery was up 95 yuan, or 0.7%, at 14,080 yuan ($1,960.10) per metric ton.
Thailand’s meteorological agency warned of hot weather in upper Thailand from March 13-16. Global goods trade should continue to recover gradually in the first few months of 2024, the World Trade Organization said on Friday.
Japan’s economy expanded at an annualised clip of 0.4% in October-December from the previous quarter, better than the initial estimate for a 0.4% contraction. China’s consumer prices rose for the first time in six months due to spending linked to the Lunar New Year, offering some reprieve for the world’s second-biggest economy grappling with weak consumer sentiment, while factory-gate prices fell again. Rubber inventories in warehouses monitored by the SHFE rose 0.4% for the week, the exchange said on Friday.
Japanese shares ended sharply lower on Monday as chip-related stocks tracked their US peers lower and the yen’s strength hurt appetite for exporters.
The yen firmed against the dollar on Monday as signs the Bank of Japan will exit negative interest rates at its policy meeting next week contrasted with expectations that the Federal Reserve will cut rates in June. The front-month rubber contract on Singapore Exchange’s SICOM platform for April delivery last traded at 162.1 US cents per kg, down 1.1%.
Source: Brecorder
