SINGAPORE: Japanese rubber futures fell for a third straight session on Friday and were poised for a weekly loss, as supply concerns eased on prospects of better weather conditions in top producer Thailand.
The March Osaka Exchange (OSE) rubber contract was down 3.4 yen, or 0.88%, at 382.3 yen ($2.52)per kg, as of 0210 GMT. The contract has lost 3.27% so far this week.
The January rubber contract on the Shanghai Futures Exchange (SHFE) rose 90 yuan, or 0.5%, to 18,125 yuan ($2,544.61) per metric ton. The contract has dipped 0.22% so far this week.
Expectations for increased output are strong as weather interference factors have weakened, pressuring raw material prices and weakening rubber cost support, Chinese commodities data provider Longzhong Information said in a note.
It is expected that the natural rubber market may be volatile and weak in the short term, said Longzhong Information.
Japanese rubber futures dip on easing weather concerns
During Oct. 29-30, the southwest monsoon prevailing over parts of Thailand will weaken, while less rains are likely in the upper parts of the country, the meteorological agency said on Friday.
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 0.1% lower at 152 per dollar and was looking at a 1.5% weekly loss.
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 197.4 U.S. cents per kg, up 0.7%.
Source: Brecorder
