Japan futures tick up on softer yen; lower synthetic prices cap gains
SINGAPORE, Oct 17 (Reuters) -
Japanese rubber futures edged higher on Thursday, buoyed by a weaker yen and higher crude oil prices, although softer synthetic rubber prices capped gains.
The March Osaka Exchange (OSE) rubber contract JRUc6, 0#2JRU: was up 1.3 yen, or 0.34%, at 386.8 yen ($2.59) per kg as of 0200 GMT.
The January rubber contract on the Shanghai Futures Exchange (SHFE) SNRv1, however, fell 115 yuan, or 0.64%, to 17,950 yuan ($2,521.49) per metric ton.
The most active November butadiene rubber contract on the SHFE SHBRv1 was down 165 yuan, or 1.06%, to 15,465 yuan ($2,172.42) per metric ton.
The yen JPY=EBS on Thursday struggled near the 150-per-U.S. dollar level and was last at 149.47, as uncertainty over the upcoming U.S. election loomed and resilience in the U.S. economy added to bets the Federal Reserve will be less aggressive in easing rates versus its peers elsewhere. USD/
A stronger currency makes yen-denominated assets less affordable to overseas buyers. FRX/
Oil prices rose in early Asian trade, paring sharp losses over the past two sessions, after an unexpected drop in U.S. crude stockpiles. 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.
European Union ambassadors agreed on Wednesday to delay the implementation of the bloc's landmark deforestation law by a year till the end of December 2025.
The law, know as EUDR, will require companies importing products, including rubber, to prove their supply chains did not contribute to the destruction of the world's forests.
Large operators and traders will have to comply by Dec. 30, 2025, while smaller and mid-sized firms will have until June 30, 2026.
The front-month November rubber contract on Singapore Exchange's SICOM platform STFc1 last traded at 197.7 U.S. cents per kg, up 0.8%.
($1 = 149.3800 yen)
($1 = 7.1188 yuan)
Reporting by Gabrielle Ng; Editing by Sumana Nandy
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