Japan futures recover on global weather concerns
Updates closing prices
SINGAPORE, Oct 9 (Reuters) -
Japanese rubber futures regained their footing on Wednesday, buoyed by concerns of wet weather disrupting global supply, although fading enthusiasm from top consumer China's stimulus measures capped gains.
The March Osaka Exchange (OSE) rubber contract JRUc6, 0#2JRU: closed up 10.4 yen, or 2.63%, at 406.0 yen ($2.73) per kg.
The January rubber contract on the Shanghai Futures Exchange (SHFE) SNRv1, however, fell 300 yuan, or 1.56%, to finish at 18,920 yuan ($2,679.36) per metric ton.
Raw material prices are currently high, as limited improvement in weather conditions across various production areas has restricted upstream output, with continuous rainfall affecting the rubber-tapping process, said Chinese futures site Beite Futures.
Thailand's meteorological agency warned of heavy rains that may cause flash flood in the East and South of the country from Oct. 9-15.
Meanwhile, Qingdao's natural rubber inventories edged 1.77% lower from the previous week, commodities service provider Longzhong Information said.
Although support from the cost side remains strong, the rubber market's bullish sentiment weakened after the holiday, with demand mainly coming from buying orders to replenish and rotate warehouse stocks for the month, Longzhong Information said.
While investor confidence in China's economy has been markedly lifted by Beijing's massive stimulus, some analysts believe yesterday's announcement lacked full details of policies and plans for implementation, said Jom Jacob, chief analyst at Indian analysis firm What Next Rubber.
China said on Tuesday it was "fully confident" of achieving its full-year growth target but refrained from introducing stronger fiscal steps, disappointing investors who had banked on more policy support to get the economy back on track.
On Wednesday, the country announced its finance ministry will hold a news conference on Saturday to detail plans on fiscal stimulus.
The front-month November rubber contract on Singapore Exchange's SICOM platform STFc1 last traded at 203.5 U.S. cents per kg, up 0.4%.
($1 = 148.5900 yen)
($1 = 7.0614 yuan)
Reporting by Gabrielle Ng; Editing by Sherry Jacob-Phillips and Mrigank Dhaniwala
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