SINGAPORE, Sept 18 (Reuters) –
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Shanghai rubber futures rose more than 4% on Wednesday as trading resumed after a long holiday weekend, with weather-related disruptions in top producer Thailand underpinning the market.
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Japanese rubber futures edged higher, although gains were limited by a firmer yen.
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The January rubber contract on the Shanghai Futures Exchange (SHFE) SNRv1 rose 785 yuan, or 4.6%, to 17,835 yuan ($2,513.49) per metric ton.
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The Osaka Exchange (OSE) rubber contract for February delivery JRUc6, 0#2JRU: was up 0.6 yen, or 0.16%, at 375.1 yen ($2.65) per kg as of 0200 GMT.
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Continuous rain in Thailand has disrupted rubber-tapping work, factory production and transportation, keeping raw materials prices high, said Chinese futures company Guotai Junan Futures.
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Natural rubber prices may remain strong in the short term due to a rise in synthetic rubber prices, said Guotai Junan Futures.
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The most active November butadiene rubber contract on the SHFE SHBRv1 rose 445 yuan, or 2.89%, to 15,865 yuan ($2,235.86) per metric ton.
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The dollar was last down 0.55% at 141.605 yen JPY=EBS, as a big week for the currency pair culminates with the Federal Reserve policy decision on Wednesday and the Bank of Japan decision on Friday. USD/
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The Fed is expected to make its first interest rate cut in more than four years later in the day.
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A stronger Japanese currency makes yen-denominated assets less affordable to overseas buyers. FRX/
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Oil prices steadied, after gaining about $1 a barrel on Tuesday, as investors awaited the Fed’s anticipated rate cut, with the potential for more violence in the Middle East supporting the market. 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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The front-month October rubber contract on Singapore Exchange’s SICOM platform STFc1 last traded at 193.9 U.S. cents per kg, up 0.4%.
($1 = 141.5300 yen)
($1 = 7.0957 yuan)
Reporting by Gabrielle Ng; Editing by Subhranshu Sahu
