SINGAPORE, Aug 28 (Reuters) –
- Japanese rubber futures rose for a seventh straight session on Wednesday to touch their highest level in 13 years, as a slowing global supply outlook underpinned prices.
- The Osaka Exchange (OSE) rubber contract for January delivery JRUc6, 0#2JRU: was up 8 yen, or 2.2%, at 368.0 yen ($2.55) per kg as of 0150 GMT.
- The contract hit an intraday high of 370.5 yen, its strongest level since Sept. 9, 2011.
- The January rubber contract on the Shanghai Futures Exchange (SHFE) SNRv1 was up 230 yuan, or 1.4%, at 16,650 yuan ($2,336.65) per metric ton.
- The most active October butadiene rubber contract on the SHFE SHBRv1 rose 330 yuan, or 2.22%, to 15,200 yuan ($2,133.15) per metric ton.
- Main producing areas in China have been hit by frequent rainfall since the start of August, supplying raw material at a slower-than-expected pace, while overseas producing regions also saw relatively small output, Chinese futures research firm Tianfeng Futures said in a note.
- This has led to high domestic and foreign raw material prices, forming a strong support for rubber futures, which are expected to continue their upward trend, said Tianfeng Futures.
- Top rubber producer Thailand’s meteorological agency warned of heavy to very heavy rains that may cause flash flood and overflows from Aug. 27-Sept. 2.
- Thailand’s benchmark export-grade smoked rubber sheet (RSS3) RUB-RSS3C-BKK and block rubber RUB-STR20C-BKK were up 1.37% and 0.89% at 91.19 baht ($2.69) and 67.01 baht, respectively.
- The yen JPY=EBS edged further off Monday’s three-week high of 143.45 against the greenback, and was last 0.18% lower at 144.225 per dollar. USD/
- A weaker Japanese currency makes yen-denominated assets more affordable to overseas buyers. FRX/
- The front-month September rubber contract on Singapore Exchange’s SICOM platform STFc1 last traded at 182.2 U.S. cents per kg, up 0.7%.
($1 = 144.2000 yen)
($1 = 7.1256 yuan)
($1 = 33.9400 baht)
Reporting by Gabrielle Ng; Editing by Subhranshu Sahu
Source:
Reuters
