SINGAPORE, Sept 5 (Reuters) –
- Japanese rubber futures recovered on Thursday after falling for three sessions, buoyed by higher synthetic rubber prices and steadier oil.
- The Osaka Exchange (OSE) rubber contract for February delivery JRUc6, 0#2JRU: was up 2.1 yen, or 0.6%, at 353.7 yen ($2.46) per kg as of 0220 GMT.
- The January rubber contract on the Shanghai Futures Exchange (SHFE) SNRv1 was up 35 yuan, or 0.22%, at 16,180 yuan ($2,279.03) per metric ton.
- The most active October butadiene rubber contract on the SHFE SHBRv1 rose 80 yuan, or 0.55%, to 14,745 yuan ($2,076.91) per ton.
- With fundamentals unchanged, market sentiment has begun to stabilise, while demand is also slowly improving, said Chinese rubber information portal Natural Rubber Network.
- Oil was attempting to hold its line after an overnight sell-off, due to weak demand alongside a possible delay to a supply hike next month. O/R
- Both Brent and West Texas Intermediate (WTI) crude futures closed at their lowest since December on Tuesday.
- Natural rubber often takes direction from oil prices as it competes for market share with synthetic rubber, which is made from crude oil.
- Top producer Thailand’s meteorological agency warned of heavy rains that may cause flash flood from Sept. 8-10.
- The dollar dipped as traders ramped up bets for a supersized Fed rate cut later this month, with the yen being a notable outperformer on safe-haven demand. USD/
- The Japanese currency JPY=EBS was last 0.26% stronger at 143.56 per dollar, and is up nearly 2% for the week.
- A stronger currency makes yen-denominated assets less affordable to overseas buyers. FRX/
- The front-month rubber contract on Singapore Exchange’s SICOM platform for October delivery STFc1 last traded at 177 U.S. cents per kg, up 1.0%.
($1 = 143.7000 yen)
($1 = 7.0995 yuan)
Reporting by Gabrielle Ng; Editing by Rashmi Aich
Source:
Reuters
