Updates closing prices, adds details
SINGAPORE, May 16 (Reuters) –
- Japanese rubber futures logged a four-day rallyon Thursday amid weather concerns in top producer Thailand and higher oil prices, although a stronger yen capped gains.
- The Osaka Exchange (OSE) rubber contract for October delivery JRUc6, 0#2JRU: closed up 5.3yen, or 1.67%, at 322.5 yen ($2.09) per kg, the highest close since April 12.
- The contract rose for a fourth consecutive session, marking its longest rally since April 1.
- The rubber contract on the Shanghai Futures Exchange (SHFE) for September delivery SNRv1 rose 330 yuan to finish at 14,710 yuan ($2,038.30) per metric ton.
- Thailand’s meteorological agency warned of “severe weather conditions”, “heavy to very heavy rains” and “flash floods” from May 16-21, potentially causing crop damage.
- Oil prices extended gains on signs of stronger demand in the U.S. where data showed slower inflation than markets expected, bolstering the argument for an interest rate cut which could drive even greater consumption. O/R
- Natural rubber often takes direction from oil prices as it competes for market share with synthetic rubber, which is made from crude oil.
- The Japanese yen JPY= strengthened as much as 0.6% to 153.68 against the dollar on Thursday. A stronger currency makes yen-denominated assets less affordable to overseas buyers. FRX/
- Japan’s economy contracted in the first quarter, squeezed by weaker consumption and external demand and throwing a fresh challenge to policymakers as the central bank looks to lift interest rates away from near-zero levels.
- China is considering a plan for local governments nationwide to buy millions of unsold homes, reported BloombergNews.
- China listed 99 new energy vehicle models in a government-backed campaign to promote sales in rural areas, the Ministry of Industry and Information Technology said.
- The front-month rubber contract on Singapore Exchange’s SICOM platform for June delivery STFc1 last traded at 168.7 U.S. cents per kg, up 1.57%.
($1 = 154.2000 yen)
($1 = 7.2168 yuan)
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