SINGAPORE, Sept 18 (Reuters) –
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Shanghai rubber futures posted their biggest daily gain in over three months on Wednesday, with markets resuming trade after an extended holiday weekend.
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Japanese rubber futures ticked higher, although gains were capped by a firmer yen.
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The January rubber contract on the Shanghai Futures Exchange (SHFE) SNRv1 ended up 665 yuan, or 3.9%, at 17,715 yuan ($2,496.41) per metric ton, logging its biggest intraday gain since June 7.
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The Osaka Exchange (OSE) rubber contract for February delivery JRUc6, 0#2JRU: closed up 0.4 yen, or 0.11%, at 374.9 yen ($2.65) per kg.
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The most active November butadiene rubber contract on the SHFE SHBRv1 rose 450 yuan, or 2.92%, to 15,870 yuan ($2,236.41) per metric ton.
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The rubber market saw sharp price upticks as heavy rains affected large supplier Thailand, across both the northern and southern regions, said Farah Miller, CEO of independent rubber-focused data firm Helixtap Technologies.
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However, there could be some profit-taking towards the latterpart of the week if investors feel the weather factor has been priced in, Miller said.
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Speculative traders are likely to exercise caution, while awaiting an interest decision by the Federal Reserve later in the day, said Jom Jacob, chief analyst at What Next Rubber.
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The yen rose about 0.7% to 141.41 per dollar JPY=EBS on Wednesday. USD/
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The Japanese currency has been surging because the Bank of Japan – which will announce its policy decisionon Friday – has been hiking rates at the same time as the Fed prepares to make its first rate cut in over four years.
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A stronger Japanese currency makes yen-denominated assets less 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 192.2 U.S. cents per kg, down 0.5%.
($1 = 141.5500 yen)
($1 = 7.0962 yuan)
Reporting by Gabrielle Ng; Editing by Subhranshu Sahu and Sonia Cheema
