TOKYO, May 15 (Reuters) –
- Japanese rubber futures rallied for a third session on Wednesday, hitting an about 1-month high, as firmer physical prices in top producer Thailand prompted fresh buying, while a weak yen and stronger oil prices provided additional support.
- The Osaka Exchange (OSE) rubber contract for October delivery JRUc6, 0#2JRU: was up 0.9 yen, or 0.29%, at 314.2 yen ($2) per kg as of 0247 GMT. It earlier reached 318.1 yen, the highest since April 12.
- The rubber contract on the Shanghai Futures Exchange (SHFE) for September delivery SNRv1 was down 90 yuan, or 0.62%, at 14,375 yuan ($1,988) per metric ton.
- Rubber prices are likely to remain high as harvesting is affected by weather disturbances, pushing Thailand raw materials prices higher, while downstream tyre factories in China have gradually resumed production after the long holiday, China-based consultancy Longzhong said in a note on Tuesday.
- The yen JPY= languished near a two-week low against the dollar as a still-gaping yield gap between local bonds and U.S. peers continued to encourage selling of the Japanese currency. A weaker currency makes yen-denominated assets more affordable to overseas buyers. FRX/
- Japan’s benchmark Nikkei average .N225 was up 0.34% in early trades. .T
- Oil prices rose on Wednesday as large wildfires were threatening Canada’s oil sands and as the market expected U.S. crude oil and gasoline inventories to show a drawdown later in the day.
- Natural rubber often takes direction from oil prices as it competes for market share with synthetic rubber, which is made from crude oil.
- The front-month rubber contract on the Singapore Exchange’s SICOM platform for June delivery STFc1 last traded at 165.1 U.S. cents per kg, up 0.2%.
($1 = 7.2305 Chinese yuan renminbi)
($1 = 156.4600 yen)
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