Japan futures hit two-month low on firmer supply prospects
SINGAPORE, Nov 1 (Reuters) -
Japanese rubber futures fell to their lowest in two months on Friday and were set to lose for the week, as prospects of firmer global supply weighed on the market while a stronger yen added to the decline.
The Osaka Exchange (OSE) rubber contract for April delivery JRUc6, 0#2JRU: was down 8.7 yen, or 2.43%, at 349.8 yen ($2.30) per kg as of 0225 GMT.
The contract earlier fell by as much as 3.07% to 347.9 yen, its weakest level since Sept. 9, and has lost 6.65% so far this week.
The rubber contract on the Shanghai Futures Exchange (SHFE) for January delivery SNRv1 was down 275 yuan, or 1.54%, to 17,555 yuan ($2,464.69) per metric ton, a fall of 2.22% so far for the week.
Due to strong expectations of increased supply from overseas production areas, the downward trend of raw material prices, weakening of upstream production costs, and the delay of the EUDR leading to slower purchasing, the natural rubber market will continue to fluctuate and weaken in the short term, said Chinese financial information site Hexun Futures in a note.
The yen was last largely unchanged at 152.02 per U.S. dollar JPY=EBS, holding onto to Thursday's gains as investors continued to digest a less dovish message from the Bank of Japan in the previous session. USD/
A stronger currency makes yen-denominated assets less affordable to overseas buyers. FRX/
Top consumer China's manufacturing activity swung back to growth in October as an expansion in new orders led to a pick-up in production growth, signalling an improvement in the sector at the start of the final quarter, a private-sector survey showed.
The front-month rubber contract on Singapore Exchange's SICOM platform for December delivery STFc1 last traded at 194.1 U.S. cents per kg, down 0.8%.
($1 = 152.2100 yen)
($1 = 7.1226 yuan)
Reporting by Gabrielle Ng; Editing by Sumana Nandy
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