Japan futures tick up on supply woes, global economic concerns cap gains
Updates closing prices, adds analyst quote and details
SINGAPORE, Aug 6 (Reuters) -
Japanese rubber futures edged up on Tuesday, buoyed by supply disruptions in top producer Thailand, although concerns over recovery in the U.S. and China limited gains.
The Osaka Exchange (OSE) rubber contract for January delivery JRUc6, 0#2JRU: closed up 1.5 yen, or 0.48%, at 313.7 yen ($2.15) per kg.
The January rubber contract on the Shanghai Futures Exchange (SHFE) SNRv1, however, fell 40 yuan, or 0.26%, to finish at 15,615 yuan ($2,185.38) per metric ton.
Rubber prices continue to be supported by lower-than-expected supply, with raw material prices holding steady, a Singapore-based trader said.
Thailand's meteorological agency reported abundant rainfall over upper Thailand from July 29 to Aug. 4, with heavy to very heavy rainfall and flooding in several areas.
However, futures markets are expected to move sideways with a downward bias, as broad investor sentiment is weighed down by reduced risk appetite amid elevated concerns over weak economic recovery in the U.S. and China, said Jom Jacob, chief analyst at Indian analysis firm What Next Rubber.
U.S. Federal Reserve policymakers pushed back on Monday against the notion that weaker-than-expected July jobs data means the economy is in recessionary freefall, but also warned that the Fed will need to cut rates to avoid such an outcome.
Top rubber consumer China's exports likely climbed at a quicker pace in July as manufacturers benefited from the ongoing upturn in the global merchandise trade, which is expected to keep exports robust and dull tariff scares.
A fourth straight month of export growth would provide a silver lining to an otherwise depressed economic mood in China, which is still struggling for momentum.
The front-month September rubber contract on Singapore Exchange's SICOM platform STFc1 last traded at 166.7 U.S. cents per kg, down 0.2%.
($1 = 146.0200 yen)
($1 = 7.1452 yuan)
Reporting by Gabrielle Ng; Editing by Rashmi Aich
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