SINGAPORE: Japanese rubber futures rose on Monday after a two-session decline, as concerns of wet weather disrupting supply from top producer Thailand countered prospects of weaker demand.
The May Osaka Exchange (OSE) rubber contract closed 3.5 yen, or 0.95%, higher at 372.9 yen ($2.43) per kg. The May rubber contract on the Shanghai Futures Exchange (SHFE) dipped 10 yuan, or 0.05%, to finish at 18,480 yuan ($2,538.32) per metric ton.
As the rainy season will continue till the end of the month in southern Thailand, tapping and production processes will recover slowly and raw material prices may remain high, Chinese financial information site Hexun Futures said in a note.
However, demand from downstream product companies is not strong amid high costs and low profits, said Hexun. Thailand’s meteorological agency warned on Monday of heavy to very heavy rains that may cause flash flood from Dec. 16-17. China’s economy is expected to grow by about 5% this year, the deputy director of the country’s central financial and economic affairs commission said on Saturday. The dollar added 0.1% to 153.87 yen, and earlier touched 153.91 for the first time since Nov. 26, amid expectations the Federal Reserve will cut interest rates this week but then signal a measured pace of easing for 2025. A weaker Japanese currency makes yen-denominated assets more affordable to overseas buyers.
Source: Brecorder
