SINGAPORE, Sept 16 (Reuters) –
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Singapore rubber futures strengthened on Monday, buoyed by firmer global demand prospects for the commodity and higher oil prices, although weak economic data from top consumer China capped gains.
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The front-month rubber contract on Singapore Exchange’s SICOM platform for October delivery STFc1 last traded at 187.0 U.S. cents per kg, up 1.0%.
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The Osaka Futures Exchange is closed on Monday for Respect for the Aged Day in Japan. The market will resume trading on Sept. 17.
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The Shanghai Futures Exchange is closed on Sept. 16 and 17 for the Middle Autumn Festival in China.
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Expectation of lower global interest rates, combined with calls for additional Chinese economic stimulus, has spurred buying interest in both natural and synthetic rubber markets, Japan Exchange Group said in a report on Monday.
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Market sentiment remains bullish as prices are approaching the June high of 187.0 U.S. cents, said Japan Exchange Group.
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Oil prices edged up in early trade amid expectations of a U.S. rate cut this week, though gains were capped by U.S. supply resumptions following Hurricane Francine and weaker China data. 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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China’s industrial output growth slowed to a five-month low in August, while retail sales and new home prices weakened further, bolstering the case for aggressive stimulus to shore up the economy and help it achieve its annual growth target.
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The sluggish data released on Saturday echoed soft bank lending figures on Friday, underscoring weak growth momentum in the $18.6 trillion economy in the third quarter.
Reporting by Gabrielle Ng; Editing by Subhranshu Sahu
