SINGAPORE, Aug 26 (Reuters) –
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Japanese rubber futures rose for the fifth consecutive session on Monday, buoyed by persistent supply concerns amid wet weather conditions in China and top producer Thailand, although a stronger yen capped gains.
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The Osaka Exchange (OSE) rubber contract for January delivery JRUc6, 0#2JRU: was up 2.1 yen, or 0.6%, at 351.2 yen ($2.45) per kg as of 0225 GMT.
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The January rubber contract on the Shanghai Futures Exchange (SHFE) SNRv1 rose 50 yuan, or 0.31%, to 16,360 yuan ($2,298.14) per metric ton.
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The sustained rise in rubber futures is mainly due to rainfall affecting raw material supplies from Thailand, said Chinese financial information site Hexun Futures in a note.
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Additionally, rubber supply from the main domestic producing areas was lower than expected, with frequent rainfalls leading to temporary suspensions of tapping due to leaf disease, Hexun Futures added.
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Thailand’s meteorological agency warned of heavy rains that may cause flash flood from Aug. 26-30.
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Oil prices extended gains on fears a major spillover in fighting from the Gaza conflict into the Middle East could disrupt regional oil supplies. O/R
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Natural rubber often takes direction from oil prices as it competes for market share with synthetic rubber, which is made from crude oil.
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The yen rose to a three-week high against the dollar on Monday as Federal Reserve Chair Jerome Powell’s emphatic dovish shift contrasted sharply with Bank of Japan chief Kazuo Ueda’s steadfastly hawkish tone. USD/
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The dollar sank as much 0.59% to 143.56 yen JPY=EBS for the first time since Aug. 5.
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A stronger currency makes yen-denominated assets less affordable to overseas buyers. FRX/
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The front-month September rubber contract on Singapore Exchange’s SICOM platform STFc1 last traded at 178.7 U.S. cents per kg, up 0.8%.
($1 = 143.5600 yen)
($1 = 7.1188 yuan)
Reporting by Gabrielle Ng; Editing by Rashmi Aich
