SINGAPORE, June 24 (Reuters) –
- Japanese rubber futures pared early losses to tick up on Monday on a weak yen, although muted demand and lower global oil prices capped gains.
- The Osaka Exchange (OSE) rubber contract for November delivery JRUc6, 0#2JRU: closed up 0.3 yen, or 0.09%, at 327.8 yen ($2.05)per kg.
- The rubber contract on the Shanghai Futures Exchange (SHFE) for September delivery SNRv1 was down 95 yuan to finish at 14,905 yuan ($2,052.55) per metric ton.
- The yen JPY=EBS weakened to 159.94 per dollar earlier in the session, its lowest since April 29, when the yen touched a 34-year low of 160.245 leading to Japanese authorities spending some 9.8 trillion yen to support the currency. FRX/
- Weak demand condition is dominating sentiment in natural rubber both in physical and futures markets, said Jom Jacob, chief analyst at Indian analysis firm What Next Rubber, noting that “there is no indication of any imminent large-scale purchase by Chinese companies”.
- Top consumer China’s manufacturing PMI data for June, due on June 30, can bring further insights into the demand prospects of natural rubber from China for the remaining months of this year, Jacob said.
- Oil prices inched down on Monday as concerns of higher-for-longer interest rates resurfaced and lifted the dollar, offsetting support for oil markets from geopolitical tensions and OPEC+ supply cuts.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 most active July butadiene rubber contract on the SHFE SHBRv1 was down 245 yuan, at 15,020 yuan ($2,068.39) per metric ton.
- The front-month rubber contract on Singapore Exchange’s SICOM platform for July delivery STFc1 traded at 169.4 U.S. cents per kg, down 0.10%.
($1 = 159.6800 yen)
($1 = 7.2617 Chinese yuan)
Reporting by Gabrielle Ng; Editing by Mrigank Dhaniwala
Source:
Reuters
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