TOKYO: Japanese rubber futures hit a three-month high on Wednesday on supply concerns as adverse weather slowed output in Thailand, the world’s biggest producer, though trade was thin due to holidays in China and Singapore. The Osaka Exchange (OSE) rubber contract for July delivery finished 1.8 yen, or 0.5%, higher at 388.0 yen ($2.5) per kg. It earlier climbed to 389.3 yen, the highest since Oct. 23. “It appears that some producers were behind the buying,” said Jiong Gu, an analyst at Yutaka Trusty Securities, noting that recent rainfall in southern Thailand has hindered production increase ahead of the lower-supply wintering season.
Rubber crops usually undergo a wintering season of low production from February to May, before a peak harvesting period that lasts until September. “Still, with lingering concerns over weak economic growth in China, the upside for rubber prices remains limited,” Gu said.
A rebound in the Tokyo stock market from a DeepSeek-triggered selloff also improved market sentiment.
Japan’s Nikkei closed 1% higher on Wednesday, snapping a three-day losing run, following Wall Street’s recovery from a sell-off triggered by Chinese startup DeepSeek’s AI model launch. Trading in the rubber market was thin due to the Lunar New Year holidays in mainland China and Hong Kong, as well as in Taiwan, Singapore and South Korea. Mainland China’s commodity futures markets will resume trade on Wednesday, Feb. 5. Singapore’s financial markets are closed on Wednesday and Thursday. Trading will resume on Friday, Jan. 31. The yen traded at 155.29 per dollar, against 155.70 in late Tuesday trade in Asia. General Motors earnings exceeded Wall Street’s forecasts on Tuesday, but investors still dumped the stock broadly on fears of tariffs that will make it hard for the automaker to hit its 2025 targets.
Source: Brecorder
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