SINGAPORE, June 26 (Reuters) –
- Japanese rubber futures snapped a two-day winning streak on Wednesday to drop more than 1.5%, as the contract tracked lower crude oil and synthetic rubber prices.
- The Osaka Exchange (OSE) rubber contract for December delivery JRUc6, 0#2JRU: was down 5.9 yen, or 1.7%, at 329.6 yen ($2.06) per kg, as of 0216 GMT.
- The rubber contract on the Shanghai Futures Exchange (SHFE) for September delivery SNRv1 was down 285 yuan, or 1.8%, at 14,980 yuan ($2,061.77) per metric ton.
- Oil prices fell in early Asian trade after an industry group reported a surprise jump in U.S. stockpiles, fueling concerns about weaker-than-expected demand in the top oil-consuming nation. 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 190 yuan, or 1.2%, at 14,975 yuan ($2,061.08) per metric ton.
- The yen JPY= weakened 0.1% to 159.83 against the dollar, keeping markets on alert since that is only a whisker shy of where Japanese authorities likely stepped in to buy yen in April. FRX/
- A weaker currency makes yen-denominated assets more affordable to overseas buyers.
- Top rubber producer Thailand’s meteorological agency extended a warning of “heavy to very heavy rains and accumulations that may cause flash flood and runoff” from June 26-27.
- Top consumer China hopes the European Union will pursue a “rational and pragmatic” policy towards the country, moving in the same direction as China to ensure the healthy and stable development of Sino-European relations.
- The front-month rubber contract on Singapore Exchange’s SICOM platform for July delivery STFc1 traded at 167.4 U.S. cents per kg, down 1.25%.
($1 = 159.8500 yen)
($1 = 7.2656 yuan)
Reporting by Gabrielle Ng; Editing by Sherry Jacob-Phillips
Source:
Reuters
