SINGAPORE, Sept 25 (Reuters) –
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Japanese rubber futures hit a 13-year high on Wednesday, against the backdrop of top consumer China unveiling economic stimulus packages, but gains were capped by a stronger yen.
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The Osaka Exchange (OSE) rubber contract for February delivery JRUc6, 0#2JRU: was up 5.6 yen, or 1.45%, at 390.6 yen($2.72) per kg as of 0150 GMT, its highest since April 25, 2011.
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The rubber contract on the Shanghai Futures Exchange (SHFE) for January delivery SNRv1 rose 825 yuan, or 4.65%, to reach a 7-year high of 18,585 yuan ($2,648.76) per metric ton, its highest since March. 7, 2017.
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China’s central bank lowered the cost of its medium-term loans to banks on Wednesday, in line with efforts for an economic stimulus.
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China’s yuan hit a 16-month high of 7.017 yuan per U.S. dollar against the greenback on Tuesday, after economic reshuffles were unveiled.
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The most active October butadiene rubber contract on the SHFE SHBRv1 rose 600 yuan, or 3.86%, to 16,125 yuan ($2,298.15) per metric ton.
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Top rubber producer Thailand’s meteorological agency warned of heavy to very-heavy rains and accumulations that may cause flash floods from Sept. 24-30.
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The dollar weakened 0.13% to 143.42 against the Japanese yen. USD/
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A stronger yen makes yen-denominated assets less affordable to overseas buyers. FRX/
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Oil prices steadied on Wednesday on fading excitement for the economic stimulus in China, and falling U.S. crude and fuel inventories. O/R
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Natural rubber often takes direction from oil prices as it competes for a market share with synthetic rubber, which is made from crude oil.
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The front-month rubber contract on Singapore Exchange’s SICOM platform for October delivery STFc1 last traded at 206.7 U.S. cents per kg, up 2.4%.
($1 = 143.3900 yen)
($1 = 7.0165 yuan)
($1 = 32.6100 baht)
Reporting by Haridas; Editing by Sumana Nandy
