SINGAPORE: Japanese rubber futures advanced for the third straight session to touch a one-week high on Tuesday, buoyed by wet weather in some producing regions in China and Thailand, while better Chinese economic data lent further support to the market.
The Osaka Exchange (OSE) rubber contract for February delivery closed up 3.9 yen, or 1.09%, at 360.5 yen ($2.52) per kg.
The contract hit an intraday high of 363.9 yen, its strongest level since Sept. 3.
The January rubber contract on the Shanghai Futures Exchange (SHFE) rose 175 yuan, or 1.05%, to finish at 16,780 yuan ($2,357.24) per metric ton.
Natural rubber prices are gathering pace largely driven by supply concerns during the usual season of peak production, as speculative funds are betting on supply disruptions caused by Super Typhoon Yagi and the abnormally heavy rains that followed in China and parts of Thailand, said Jom Jacob, chief analyst at Indian analysis firm What Next Rubber.
Top producer Thailand’s meteorological agency warned of heavy rains that may cause flash floods from Sept. 13-15.
Chinese trade data showing an unexpected acceleration in exports brought optimism over the Chinese economy and its demand prospects, Jacob said. China’s exports grew at their fastest pace in nearly 1-1/2 years in August, while imports missed forecasts amid weak domestic demand.
Source: Brecorder
