SINGAPORE: Japanese rubber futures rose on Wednesday as firmer oil prices and a weaker yen boosted market sentiment.
The Osaka Exchange (OSE) rubber contract for April delivery closed up 5.2 yen, or 1.4%, at 375.9 yen($2.51) per kg. The rubber contract on the Shanghai Futures Exchange (SHFE) for January delivery closed up 190 yuan, or 1.03%, at 18,685 yuan ($2,571.42) per metric ton. The most active January butadiene rubber contract on the SHFE closed down 115 yuan, or 0.85%, at 13,375 yuan ($1,840.66) per metric ton. The dollar added 0.29% to 150.035 yen, continuing its recovery after dipping to 148.65 yen in the previous session for the first time since Oct. 11.
A weaker currency makes yen-denominated assets more affordable to overseas buyers. Oil prices firmed on Wednesday as market participants weighed up geopolitical tensions and the prospect of OPEC+ extending supply cuts against weaker demand. Natural rubber often takes direction from oil prices as it competes for market share with synthetic rubber, which is made from crude oil.
Top rubber producer Thailand’s meteorological agency warned of heavy rains that may cause flash floods from Dec. 4-10. The front-month rubber contract on Singapore Exchange’s SICOM platform for November delivery last traded at 202.2 US cents per kg, up 0.4%.
Source: Brecorder
