SINGAPORE, May 20 (Reuters) –
- Japanese rubber futures rose more than 2% onMonday amid higher oil prices and supply concerns.
- The Osaka Exchange (OSE) rubber contract for October delivery JRUc6, 0#2JRU: ended up 6.9yen, or 2.14%, at 328.9 yen ($2.11) per kg, the highest close since April 10.
- The rubber contract on the Shanghai Futures Exchange (SHFE) for September delivery SNRv1 rose 180yuan to finishat 14,865 yuan ($2,055.99) per metric ton.
- Oil extended gains amid political uncertainty in major producing countries after Iran’s president died in a helicopter crash and the Saudi crown prince cancelled a Japan trip. 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.
- Tight supply is likely to persist in the short term as large-scale tapping takes time to occur, China-based consultancy Longzhong said in a note on Monday, adding that faster-than-expected depletion of rubber inventories in China is also supporting prices.
- Top producer Thailand’s benchmark export-grade smoked rubber sheet (RSS3) RUB-RSS3C-BKK hit 86.94 baht per kg on Monday, 1.29% higher than Friday.
- “The weaker JPY and speculative buying interest are expected to keep prices (of the OSE October contract) firm over the next couple of weeks,” Japan Exchange Group said in a strategy report published Monday.
- The yen JPY= weakened 0.05% to 155.75 against the dollar. A weaker currency makes yen-denominated assets more affordable to overseas buyers. FRX/
- China announced “historic” steps on Friday to stabilise its crisis-hit property sector, with the central bank facilitating 1 trillion yuan ($138 billion) in extra funding and easing mortgage rules, and local governments set to buy “some” apartments.
- The front-month rubber contract on the Singapore Exchange’s SICOM platform for June delivery STFc1 last traded at 169.9 U.S. cents per kg, up 0.83%.
($1 = 155.7100 yen)
($1 = 7.2301 yuan)
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