Japanese rubber futures rose on today, snapping a two-day losing streak, due to higher crude oil prices, while a weaker yen also lent support.
The Osaka Exchange December delivery rose 5.7 yen, or 1.74% and SHFE September delivery was up 135 yuan or 0.91%.
Oil prices gained about 2% to a two-month high on Monday on hopes of rising demand during the Northern Hemisphere’s summer driving season and worries that the conflict in the Middle East could spread and reduce global oil supplies.
In top rubber consumer China, factory activity among smaller manufacturers grew at the fastest pace since 2021, thanks to overseas orders.
Top producer Thailand’s meteorological agency warned of heavy rains and accumulations that may cause flash flood and runoffs from July 4-7, potentially causing crop damage.
The impact of rainfall and upward trend in Butadiene Rubber Prices offering some level of support to the natural rubber market.
The short-term outlook for the natural rubber market suggests that there will be minor fluctuations.
