SINGAPORE, Oct 7 (Reuters) –
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Japanese rubber futures slipped on Monday, weighed down by prospects of an implementation delay in a key European Union deforestation law, although losses were limited by supply worries and a weaker yen.
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The March Osaka Exchange (OSE) rubber contract JRUc6, 0#2JRU: was down 2.1 yen, or 0.53%, at 397.7 yen ($2.68)per kg, as of 0155 GMT.
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The Shanghai Futures Exchange is closed from Oct. 1 to 7 for China’s National Day holiday. Trading will resume on Tuesday, Oct. 8.
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The European Commission said on Wednesday that it would propose to delay the implementation of its European Union Deforestation-free Regulation (EUDR) law by a year.
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The law would require companies in the bloc from Dec. 30 to prove supply chains of their commodities, including rubber, do not contribute to deforestation.
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Last week’s decline in rubber prices followed news of a possible delay in the implementation of the EUDR, Japan Exchange Group said in a report.
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Supply concerns continue to support prices on the OSE, while the sharp drop in the yen against the dollar could attract some “light buying interest”, Japan Exchange Group said.
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From Oct. 6-12, isolated heavy rains are likely in Thailand’s lower Central area and possibly in the South, the country’s meteorological agency said.
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Japan’s yen JPY=EBS fell to its lowest in nearly two months as the dollar extended last week’s rally. USD/
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A softer Japanese currency makes yen-denominated assets more affordable to overseas buyers. FRX/
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Oil prices pared gains after charting their biggest weekly rise in over a year on Friday amid mounting threats of a region-wide war in the Middle East. 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 November rubber contract on Singapore Exchange’s SICOM platform STFc1 last traded at 202.3 U.S. cents per kg, up 0.8%.
($1 = 148.3900 yen)
Reporting by Gabrielle Ng; Editing by Subhranshu Sahu
