Japan rubber futures snap five-day winning streak on seasonal weather relief
The Osaka Exchange (OSE) rubber contract for December delivery ended daytime trade down 0.7 yen, or 0.22%, at 317 yen ($2.15) per kg.
The rubber contract on the Shanghai Futures Exchange (SHFE) for September delivery rose 90 yuan, or 0.63%, to 14,395 yuan ($2,006.50) per metric ton.
The most active August butadiene rubber contract on the SHFE fell 50 yuan, or 0.43%, to 11,535 yuan ($1,607.84) per metric ton.
Thailand's meteorological agency warned of heavy rains and accumulations that may cause flash floods and overflows from July 19-21.
Despite this, rain in Thailand has weakened in line with seasonality, allowing rubber tapping activity to return to normal, said Chinese financial information site Tonghuashun Information.
Rubber crops usually undergo a season of low production from February to May, before a peak harvesting period that lasts until September.
Japanese rubber futures firm on weather woes
Global sales of electric vehicles jumped 24% in June, with sales in China up 28% from the same month last year to 1.11 million vehicles.
However, reports of a possible slowdown in China due to some cities running out of subsidies continued to weigh.
sales could influence the intensity of automobile manufacturing, which involves using rubber-made tyres.
Elsewhere, oil prices fell on U.S. President Donald Trump's pressure on Russia to end the Ukraine war.
Natural rubber often takes direction from oil prices as it competes for market share with synthetic rubber, which is made from crude oil.
The front-month rubber contract on Singapore Exchange's SICOM platform for August delivery last traded at 166 U.S. cents per kg, up 0.5%.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Business Recorder
an hour ago
- Business Recorder
Dollar hits 15-week high against yen as consumer prices gain
NEW YORK: The dollar reached a 15-week high against the Japanese yen on Tuesday after U.S. data that showed a rise in consumer prices in June, though the increase was not big enough to change expectations on when the Federal Reserve is likely to resume interest rate cuts. Expectations that U.S. President Donald Trump's tariff policies will increase price pressures are seen keeping the Fed on hold as policymakers wait to see their impact. Fed Chair Jerome Powell has said he anticipated prices will rise this summer. 'Tariffs are in the data, but it's not as devastating as many feared,' said Brian Jacobsen, chief economist at Annex Wealth Management in Menomonee Falls in Wisconsin. The Consumer Price Index increased 0.3% last month after edging up 0.1% in May. That was the largest gain since January. In the 12 months through June, the CPI advanced 2.7% after rising 2.4% in May. Dollar holds near 3-week high before CPI; bitcoin eases back from record peak Economists polled by Reuters had forecast a 0.3% monthly increase and a 2.6% rise on a year-over-year basis. Excluding the volatile food and energy components, the CPI rose 0.2% in June after edging up 0.1% in the prior month. In the 12 months through June, core inflation was 2.9%, inching up after holding at 2.8% for three straight months. Fed funds traders are pricing in 48 basis points of cuts by year-end, little changed from before the data, with the first rate reduction expected in September. 'A slightly softer-than-expected June core inflation reading keeps alive the chances of a September Federal Reserve interest rate cut, but the risk is that we get less benign prints for July and August,' James Knightley, chief international economist, US at ING said in a note. 'That means we will need to see clear evidence of softer jobs figures to trigger Fed action before December.' The euro was last down 0.27% on the day at $1.1631, the lowest since June 25. Against the Japanese yen, the dollar strengthened 0.66% to 148.68, the highest since April 3. Sterling weakened 0.21% to $1.3399, the lowest since June 23. The dollar weakened after Trump in April announced larger than expected tariffs, but then delayed many of the levies pending negotiations with trading partners. Trump last week announced higher tariffs would come into effect on August 1 for imports from a range of countries, including Mexico, Japan, Canada and Brazil, and the European Union, though market reaction this time was relatively muted. 'The market is ignoring the tariffs until it becomes clear whether there's going to be sort of a major escalation like there was with China in April or if this is just yet another step on the way to some sort of deal,' said Steve Englander, head of global G10 FX research and North America macro strategy at Standard Chartered Bank's NY Branch. In addition to tariffs and inflation, markets are also focused on the U.S. fiscal and debt outlook, and the pressure the Trump administration is placing on Powell as he keeps rates on hold. 'There are a lot of balls in the air. It's just that it's unclear how heavy each one of them is, and which one is going to have the biggest impact when it lands,' Englander said. Trump said on Tuesday that consumer prices were low and the Fed should bring down interest rates now. Powell has also asked the U.S. central bank's inspector general to review the costs involved in the renovation of its historic headquarters in Washington, as Trump administration officials intensify their criticism of how the Fed is being run. U.S. Treasury Secretary Scott Bessent said on Tuesday that a 'formal process' is already starting to identify a potential successor to Powell, whose term will end in May. Bitcoin fell 1.52% to $118,394. It hit a record $123,153 on Monday as investors bet on long-sought policy wins for the industry this week, which has been dubbed 'crypto week' by U.S. Republicans.
Business Recorder
an hour ago
- Business Recorder
Trump to unveil investments to power AI boom
WASHINGTON: US President Donald Trump heads to Pennsylvania on Tuesday to announce energy and infrastructure deals intended to meet big tech's soaring demand for electricity needed to fuel the AI boom. Trump will make the announcement at the inaugural Pennsylvania Energy and Innovation Summit at Carnegie Mellon University. The tech world has fully embraced generative AI as the next wave of technology, but fears are growing that its massive electricity needs cannot be met by current infrastructure, particularly in the United States. Generative AI requires enormous computing power, mainly to run the energy-hungry processors from Nvidia, the California-based company that has become the world's most valuable company by market capitalization. Trump threatens 'very severe tariffs' on Russia allies if no Ukraine deal Officials expect that by 2028, tech companies will need as much as five gigawatts of power for AI – enough electricity to power roughly five million homes. According to an official who spoke to Bloomberg, Trump's announcement will total $70 billion in investments. Top executives from BlackRock, Palantir, Anthropic, Exxon and Chevron are slated to participate, the official said. The funding will cover new data centers, power generation, grid infrastructure, AI training, and apprenticeship programs. Google said it is committing $25 billion to build AI-ready data centers in Pennsylvania and surrounding regions. 'We support President Trump's clear and urgent direction that our nation invest in AI… so that America can continue to lead in AI,' said Ruth Porat, Google's president and chief investment officer, who attended the event. The search engine giant also announced a partnership with Brookfield Asset Management to to modernize two hydropower facilities in Pennsylvania, representing 670 MW of capacity on the regional grid. Senator David McCormick, from Pennsylvania, said the investments 'are of enormous consequence to Pennsylvania, but they are also crucial to the future of the nation.' His comments reflect the growing sentiment in Washington that the United States must not lose ground to China in the race to develop AI. 'If the United States does not lead this revolution on our own terms, we will hand control of our infrastructure, our data, our leadership, and our way of life to Communist China,' McCormick wrote in a Fox News op-ed. Trump launched the 'Stargate' project in January, aimed at investing up to $500 billion in US AI infrastructure – primarily in response to growing competition with China. Japanese tech investor SoftBank, ChatGPT-maker OpenAI, and Oracle are investing $100 billion in the initial phase. Trump has also reversed many policies adopted by the previous Biden administration that imposed checks on developing powerful AI algorithms and limits on exports of advanced technology to certain allied countries. He is expected to outline his own blueprint for AI advancement later this month.
Business Recorder
3 hours ago
- Business Recorder
Oil holds steady as Trump's 50-day deadline for Russia eases supply fears
Oil prices were little changed on Tuesday after U.S. President Donald Trump's lengthy 50-day deadline for Russia to end the Ukraine war and avoid sanctions eased immediate supply concerns. Brent crude futures were up a marginal 3 cents at $69.24 a barrel by 1313 GMT. U.S. West Texas Intermediate crude futures were down 7 cents at $66.90. 'The focus has been on Donald Trump. There was some fear he might target Russia with sanctions immediately and now he has given another 50 days,' said UBS commodities analyst Giovanni Staunovo. 'Those fears about an imminent additional tightness in the market have dissipated. That's the main story.' Oil prices had climbed on the potential sanctions but later gave up gains as the 50-day deadline raised hopes that sanctions could be avoided. If Trump does follow through and the proposed sanctions are implemented, 'it would drastically change the outlook for the oil market', analysts at ING said in a note on Tuesday. Oil steadies near three-week high on signs of tighter supply 'China, India and Turkey are the largest buyers of Russian crude oil. They would need to weigh the benefits of buying discounted Russian crude oil against the cost of their exports to the U.S.,' the ING note said. Trump announced new weapons for Ukraine on Monday and had said on Saturday that he would impose a 30% tariff on most imports from the European Union and Mexico from August 1, adding to similar warnings for other countries. Tariffs raise the risk of slower economic growth, which could reduce global fuel demand and drag oil prices lower. China's economy slowed in the second quarter, data showed on Tuesday, with markets bracing for a weaker second half as exports lose momentum, prices continue to fall and consumer confidence remains low. Tony Sycamore, an analyst at IG, said economic growth in China came in above consensus, largely because of strong fiscal support and the front-loading of production and exports to beat U.S. tariffs. 'Today's tepid Chinese data has direct implications for commodities including iron ore and crude oil,' he said. Elsewhere, oil demand is set to remain 'very strong' through the third quarter, keeping the market balanced in the near term, the Organization of Petroleum Exporting Countries' secretary general said, according to a Russian media report.
