SINGAPORE: Japanese rubber futures slid for a third straight session on Friday and posted their biggest weekly loss in seven weeks, as concerns about supply from top producer Thailand eased on prospects of better weather conditions.
The March Osaka Exchange (OSE) rubber contract closed down 13 yen, or 3.37%, at 372.7 yen ($2.45) per kg. The contract dropped 5.2% for the week, recording its steepest weekly fall since the week ended Sept. 6. The January rubber contract on the Shanghai Futures Exchange (SHFE) fell 275 yuan, or 1.52%, to 17,760 yuan ($2,493.12) per metric ton. The contract shed 0.69% this week. Sharp rises in the OSE contract in September were largely driven by supply factors, said Farah Miller, founder of independent rubber-focused data firm Helixtap Technologies. “However, generally improving weather conditions and lower raw material prices in Thailand could be causing some pullback in prices, as traders look to more underlying fundamental and demand factors which may not be as bullish,” said Miller.
Less rains are likely in the upper parts of Thailand from Oct. 30-31, the country’s meteorological agency said. The severe tropical storm Trami is not expected to move directly into Thailand, the meteorological agency said. The yen languished near a three-month trough and was headed for a fourth straight weekly loss, ahead of an election in Japan over the weekend that is likely to complicate the Bank of Japan’s policy normalisation plans. The Japanese currency was last up 0.1% at 151.69 per dollar, but was looking at a 1.4% loss for the week.
A weaker Japanese currency makes yen-denominated assets more affordable to overseas buyers. The front-month November rubber contract on Singapore Exchange’s SICOM platform last traded at 193.0 US cents per kg, down 1.6%.
Source: Brecorder
