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Monday, December 5, 2022

Japanese rubber futures extend gains on stronger crude prices

SINGAPORE: Japanese rubber futures rallied for a third consecutive session on Friday, supported by stronger crude prices, although trading remained thin due to the week-long holiday in top buyer China. The Osaka Exchange rubber contract for March delivery was up 1.8 yen, or 0.8%, at 233.8 yen per kg, as of 0200 GMT.

The benchmark contract has inclined about 2.4% for the week. The OSE will be closed on Monday for a public holiday in Japan. Japan’s benchmark Nikkei share average was down 0.70%, as of 0130 GMT. Chinese financial markets are closed from Oct. 1 until Oct. 7 for the Golden Week national holiday. Trading will resume on Oct. 10.

Oil prices rose on Friday, continuing an upward trend after OPEC+ this week agreed to tighten global supply with a deal to cut production targets by 2 million barrels per day (bpd).

The natural rubber market benefits from stronger oil prices that spur manufacturers to shift away from synthetic rubber, which is derived from oil, thus driving up prices of natural rubber.

Rubber output in top exporter Thailand might be affected by forecasts for continued heavy rains and flood warnings across the country during the monsoon season.

Japanese rubber futures extend gains on stronger crude prices

Source: Brecorder

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