Japan futures rebound on weather woes, China stimulus optimism
SINGAPORE, Oct 14 (Reuters) -
Japanese rubber futures recovered on Monday, after falling for three straight sessions, buoyed by continuous weather disruptions across global rubber-producing regions and lingering optimism from China's slew of stimulus measures.
The March Osaka Exchange (OSE) rubber contract JRUc6, 0#2JRU: was up 7.1 yen, or 1.84%, at 393.5 yen ($2.64) per kg, as of 0215 GMT.
The January rubber contract on the Shanghai Futures Exchange (SHFE) SNRv1 rose 275 yuan, or 1.53%, to 18,225 yuan ($2,574.95) per metric ton.
Although softer economic data from top consumer China capped an upside in prices.
Frequent weather changes have caused a decline in rubber production in major domestic and foreign production areas, with global raw material prices continuing to rise to multi-year highs since the beginning of this year, Chinese stock trading site Tonghuashun Futures said in a note.
There is still a risk of weather disturbances in Southeast Asian production areas in the fourth quarter, the site said.
Additionally, although the current macro sentiment has cooled, policy measures introduced to stimulate domestic economic growth so far can benefit the consumption of natural rubber, as the commodity is strongly related to real estate and infrastructure, Tonghuashun Futures said.
Top producer Thailand's meteorological agency warned of heavy rains that may cause flash floods during Oct. 13-19.
China's consumer inflation unexpectedly eased in September, while producer price deflation deepened, heightening pressure on Beijing to roll out more stimulus measures quickly to revive flagging demand and shaky economic activity.
Finance Minister Lan Foan told a news conference on Saturday there will be more "counter-cyclical measures" this year, but did not provide details on the overall size of the stimulus package, which investors hope will ease deflationary pressures in the world's second-largest economy.
The front-month November rubber contract on Singapore Exchange's SICOM platform STFc1 last traded at 196.5 U.S. cents per kg, down 0.7%.
($1 = 149.2200 yen)
($1 = 7.0778 yuan)
Reporting by Gabrielle Ng; Editing by Sherry Jacob-Phillips
Latest News
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.
