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Japan futures snaps two-day winning streak on demand uncertainty



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Corrects China's April rubber imports month-on-month change to 20%, not 19.66%, in the seventh bullet point

SINGAPORE, May 9 (Reuters) -

  • Japanese rubber futures snapped a two-day winning streak to close lower on Thursday amid demand uncertainty, although higher oil prices limited losses.

  • The Osaka Exchange (OSE) rubber contract for October delivery JRUc6, 0#2JRU: closed down 0.5yen, or 0.16%,at 309.3 yen ($1.99) per kg.

  • The rubber contract on the Shanghai Futures Exchange (SHFE) for September delivery SNRv1 fell 80 yuan to finishat 14,240 yuan ($1,970.72)per metric ton.

  • Uncertainty around the ongoing elections in India could hurt automakers' sales in May despite rising consumer interest for new model launches, a dealers' body said.

  • Top executives at BMW and Volkswagen warned against imposing EU import duties on electric vehicles from Chinese automakers, saying it could upend the bloc's Green Deal plan and harm automakers that import cars made in China.

  • Lower automobile sales are likely to dent demand for tyres, which are made of rubber.

  • Meanwhile, China's exports and imports returned to growth in April after contracting in March. In April, rubber imports , however, fell 20% month-on-month and 15.6% year-on-year.

  • On the supply front, rubber prices may be dampened by an imminent seasonal supply rise as "farmers widely restart tapping by next week", said Jom Jacob, co-founder of India-based analysis firm What Next Rubber, noting that some market participants harbour the view that yield could be under pressure given the abnormally hot weather.

  • Thailand's meteorological agency warned of heavy rains and flash floods in upper Thailand from May 8-14, potentially damaging crops.

  • Oil prices rose amid shrinkingU.S. crude inventories and rising hopes that the Federal Reserve would cut interest rates by the end of the year. 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.

  • The front-month rubber contract on the Singapore Exchange's SICOM platform for June delivery STFc1 last traded at 163 U.S. cents per kg, down 0.1%.

($1 = 155.7400 yen)

($1 = 7.2258 yuan)



Reporting by Cassandra Yap; Editing by Rashmi Aich and Sohini Goswami

For morning and afternoon prices at Thailand's state-run central rubber market, click on RUB-BKK3.
For other physical rubber prices in Thailand, click on RUB-BKK1, RUB-BKK2.
For more details on Indonesian and Malaysian prices click on RURKJK and RUQG.
* Reuters Terminal users can see cash and futures rubber prices by double clicking on the codes in the brackets:

- Tokyo rubber futures -- 0#JRU:
- Shanghai rubber futures -- 0#SNR:
- Singapore rubber futures -- 0#SRS:0#SRU:0#STF:
- Thai rubber futures -- 0#ARU:0#ASR20:
- All rubber news RUB
- Tokyo rubber report RUB/T
- Shanghai rubber report RUB-CN
- Thailand rubber report RUB/TH
- Asian rubber report RUB/AS

For Related News and other topics, double click on one of these codes: SPEED GUIDES RUBBER1, SOFTS/NEWS1
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