SINGAPORE, Nov 5 (Reuters) –
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Japanese rubber futures edged lower for the third consecutive session on Tuesday, weighed down by a stronger yen and weaker oil prices, while investors treaded carefully hours before the U.S. presidential election.
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The April Osaka Exchange (OSE) rubber contract JRUc6, 0#2JRU: was down 1.8 yen, or 0.51%, at 349.3 yen ($2.29) per kg as of 0150 GMT.
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The January rubber contract on the Shanghai Futures Exchange (SHFE) SNRv1 rose 70 yuan, or 0.4%, to 17,665 yuan ($2,486.21) per metric ton.
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The U.S. dollar traded at 152.325 yen JPY=EBS, after slipping to a one-week low overnight, as traders squared positions on the day of the U.S. presidential election, as recent polls dented bets among some on a victory for Republican Donald Trump. USD/
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A stronger currency makes yen-denominated assets less affordable to overseas buyers. FRX/
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Oil prices eased ahead of the U.S. election, after rising more than 2% on Monday, as OPEC+ delayed plans to hike production in December. 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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Any agreement with Chinese producers on minimum prices for electric vehicles would need to be as effective and enforceable as the EU tariffs imposed last week, said likely future European Union trade chief Maros Sefcovic.
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The EU increased tariffs on Chinese-built EVs to as much as 45.3% last Wednesday, but negotiations to avert them through price undertakings – minimum price commitments for imported cars – continue.
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Vehicle sales could influence the intensity of automobile manufacturing, which involves using rubber-made tyres.
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The front-month December rubber contract on Singapore Exchange’s SICOM platform STFc1 last traded at 193.6 U.S. cents per kg, up 0.3%.
($1 = 152.3700 yen)
($1 = 7.1052 yuan)
Reporting by Gabrielle Ng
