Japan futures tick up on oil price rally; stronger yen caps gains
Updates with closing prices and adds analyst quote
SINGAPORE, Nov 26 (Reuters) -
Japanese rubber futures climbed up Tuesday, buoyed by a pick up in global oil prices, but supply pricing concerns and a rally in yen capped gains.
The Osaka Exchange (OSE) rubber contract for May delivery JRUc6, 0#2JRU: closed up 8.3 yen, or 2.33%, at 365 yen($2.37) per kg.
The rubber contract on the Shanghai Futures Exchange (SHFE) for January delivery SNRv1 closed up 80 yuan, or 0.46%, at 17,470 yuan($2,407.43) per metric ton.
The most active January butadiene rubber contract on the SHFE SHBRv1 closed up 70 yuan, or 0.55%, to 12,770 yuan($1,759.75) per ton.
"The climb is likely due to hiccups in Thailand’s raw materials. Despite expected abundance, prices didn’t drop, showing strong market support. However, prices may fall as many buyers stay on the sidelines at these high levels," a Singapore-based rubber trader said.
The yen JPY=EBS strengthened, trading 0.4% higher at 153.55 a dollar. USD/
A weaker currency makes yen-denominated assets more affordable to overseas buyers. FRX/
Oil prices ticked up in early trade, after falling in the previous session as investors took stock of a potential ceasefire between Israel and Hezbollah, weighing on oil's risk premium. O/R
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 Nov. 26- Dec. 2.
The front-month rubber contract on Singapore Exchange's SICOM platform for December delivery STFc1 last traded at 187.9 U.S. cents per kg, up 0.9%.
($1 = 154.1100 yen)
($1 = 7.2567 yuan)
Reporting by Haridas; Editing by Sumana Nandy and Rashmi Aich
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