SINGAPORE, June 26 (Reuters) –
- Japanese rubber futures snapped a two-day climb to end lower on Wednesday, as weaker synthetic rubber prices weighed, although a soft yen limited further downslide in prices.
- The Osaka Exchange (OSE) rubber contract for December delivery JRUc6, 0#2JRU: closed down 4 yen, or 1.2%, at 331.5 yen ($2.07) per kg, easing from a one-week closing high attained on Tuesday.
- The rubber contract on the Shanghai Futures Exchange (SHFE) for September delivery SNRv1 fell 165 yuan to finish at 15,100 yuan ($2,078.03) per metric ton.
- The most active August butadiene rubber contract on the SHFE SHBRv1 was down 65 yuan to finish at 15,100 yuan ($2,078.03) per metric ton.
- Natural rubber competes for market share with synthetic rubber, which is made from crude oil.
- Oil prices inched higher during Asian trade despite a surprise jump in U.S. stockpiles, driven by geopolitical risks from the Middle East conflict and forecasts of an eventual inventory drawdown during the third quarter peak demand season. O/R
- The yen JPY= weakened 0.1% to 159.85 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 consumer China’s yuan dropped to a seven-month low against a broadly stronger dollar, with a weaker central bank guidance also dragging on the currency and putting it on course for its sixth straight monthly decline in June.
- 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 169.2 U.S. cents per kg, down 0.43%.
($1 = 159.8300 yen)
($1 = 7.2665 yuan)
Reporting by Gabrielle Ng; Editing by Sherry Jacob-Phillips
