SINGAPORE: Japanese rubber futures snapped a three-day rally on Tuesday, weighed down by weaker crude prices, although a firmer Shanghai market limited the losses.
The Osaka Exchange rubber contract for February delivery was down 0.8 yen, or 0.4%, at 220.4 yen ($1.55) per kg, as of 0145 GMT. The rubber contract on the Shanghai futures exchange for January delivery was up 110 yuan, or 0.9%, at 12,425 yuan ($1,795) per tonne. The SHFE was closed on Monday for the Mid-Autumn Festival holiday in China. Japan’s benchmark Nikkei share average started trade on a flat note on Tuesday. Oil prices slid, with both benchmarks Brent crude and WTI crude down more than 1%, as of 0120 GMT. The natural rubber market is hindered by weaker oil prices, as manufacturers are disincentivised from shifting away from synthetic rubber, which is derived from oil, thus driving natural rubber prices down.
Japan’s wholesale prices rose 9% in August from the previous year, matching the annual pace of growth in July, data showed on Tuesday.