SINGAPORE, Sept 12 (Reuters) –
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Japanese rubber futures climbed on Thursday to their highest levels in more than a week, supported by firmer oil prices and wet weather conditions across global rubber-producing regions.
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The Osaka Exchange (OSE) rubber contract for February delivery JRUc6, 0#2JRU: closed up 12.3 yen, or 3.49%, at 365.0 yen ($2.56) per kg, its strongest level since Sept. 3.
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The January rubber contract on the Shanghai Futures Exchange (SHFE) SNRv1 closed up 270 yuan, or 1.6%, to 17,045 yuan ($2,393.66) per metric ton.
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The most active November butadiene rubber contract on the SHFE SHBRv1 rose 390 yuan, or 2.6%, to 15,375 yuan ($2,159.14) per metric ton.
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Market players are increasingly concerned over a less comfortable supply despite this being the season of peak world production, which can prompt aggressive buying and inventory build-up, said Jom Jacob, chief analyst at Indian analysis firm What Next Rubber.
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Supply concerns have escalated due to the damages caused by Typhoon Yagi, continuing heavy rains and flood in Thailand, and rain-induced harvesting disruptions in Vietnam and Laos, added Jacob.
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Top producer Thailand’s meteorological agency warned of heavy to very heavy rains that may cause flash floods from Sept. 13-18.
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Oil prices rose more than 1% on Thursday, spurred by concerns of Hurricane Francine impacting output in the U.S., the world’s biggest crude producer, though worries of lower demand capped gains.
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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 dollar gained 0.31% to 142.805 yen JPY=EBS on Thursday.USD/
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A weaker Japanese currency makes yen-denominated assets more affordable to overseas buyers. FRX/
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The front-month October rubber contract on Singapore Exchange’s SICOM platform STFc1 last traded at 185.2 U.S. cents per kg, up 1.7%.
($1 = 142.5800 yen)
($1 = 7.1209 yuan)
Reporting by Gabrielle Ng; Editing by Subhranshu Sahu and Sherry Jacob-Phillips
