SINGAPORE: Japanese rubber futures rose on Thursday to their highest in more than two months, buoyed by signs of stronger Chinese demand and concerns over supplies. The Osaka Exchange (OSE) rubber contract for January delivery closed up 1.9 yen, or 0.56%, at 341.0 yen ($2.35) per kg, hitting the highest since mid-June.
The rubber contract on the Shanghai Futures Exchange (SHFE) for January delivery fell 60 yuan, or 0.37%, to finish at 16,210 yuan ($2,272.95) per metric ton. The contract hit an intraday high of 340.5 yen, its strongest level since June 14. The most active October butadiene rubber contract on the SHFE closed up 5 yuan, or 0.03%, at 14,595 yuan ($2,035.14) per metric ton. Thailand’s benchmark export-grade smoked rubber sheet was up 1.16% at 87.09 baht ($2.54), while block rubber was down 4.19% to 66.08 baht.
The dollar traded near the lowest levels in more than a year against the euro and sterling as a dovish Federal Reserve and fresh signs of weakness in the US job market backed the case for interest rate cuts. The dollar slipped 0.11% to 145.09 yen after earlier sliding as low as 144.86 yen. A stronger Japanese currency makes yen-denominated assets less affordable to overseas buyers.
A sharp sell-off in crude oil paused on Thursday after expectations of a rate cut by the Federal Reserve offset a bunch of weak economic data from the world’s two largest economies, the United States and China. Top rubber producer Thailand’s meteorological agency warned of heavy rains that may cause flash floods from Aug. 21-27. “The arrivals of primary forms of natural rubber remain abnormally low across various local markets in Southeast Asia,” said Jom Jacob, chief analyst at Indian analysis firm What Next Rubber.
Source: Brecorder
