Japanese rubber futures experienced a second consecutive decline on Monday, as the yen strengthened and favorable weather conditions in Thailand alleviated concerns about supply disruptions.
The June rubber contract on the Osaka Exchange (OSE) closed at 375.5 yen ($2.40) per kilogram, down by 9.4 yen or 2.44%. Similarly, the March rubber contract on the Shanghai Futures Exchange (SHFE) decreased by 100 yuan, or 0.57%, settling at 17,415 yuan ($2,380.50) per metric ton. The February butadiene rubber contract on the SHFE also dipped, falling 15 yuan, or 0.1%, to 14,755 yuan ($2,016.90) per ton.
Weather reports from Thailand’s meteorological agency indicated a weakening northeast monsoon over the Gulf and southern regions, with reduced rainfall and isolated thunder showers. This change in weather patterns helped ease concerns about supply disruptions from the world’s largest rubber producer.
The yen remained strong, trading at 155.98 per dollar, holding onto a one-month high reached last week. A stronger yen tends to make yen-denominated commodities less appealing to overseas buyers, contributing to the drop in rubber futures.
In addition, oil prices experienced a decline on Monday, as market expectations of U.S. President-elect Donald Trump easing sanctions on Russia’s energy sector offset concerns about supply disruptions.
