RUBBER-Japan futures set for monthly gain on Thailand supply worries

Updates for market close

SINGAPORE, Jan 31 (Reuters) -

• Japanese rubber futures climbed on Friday and were set for a monthly gain, as worsening weather in top producer Thailand sparked supply concerns, outweighing a firmer yen.

• The Osaka Exchange (OSE) rubber contract for July delivery JRUc6, 0#2JRU: ended daytime trade 6.3 yen higher, or 1.62%, at 394.4 yen ($2.55) per kg.

• The contract has risen 5.31% so far this month.

• Recent rainfall in southern Thailand has hampered production ahead of the wintering season, according to an analyst.

• Rubber crops usually undergo a wintering season of low production from February to May before a peak harvesting period that lasts until September.

• Thailand's northeast monsoon prevailing over the Gulf and southern parts will strengthen with more rains and isolated heavy rains, the country's meteorological department said in a note.

• The yen JPY=EBS was last 0.34% lower at 154.84 yen, although it is set to gain 1.6% this month, its best January performance in seven years. USD/

• A stronger Japanese currency makes yen-denominated assets less affordable to overseas buyers. FRX/

• Japan's benchmark Nikkei average .N225 closed up 0.15% at 39,572.49 on Friday.

• Meanwhile, the global car industry is in the firing line of U.S. President Donald Trump's tariff threats against Canada and Mexico.

• The automobile industry accounted for imports of more than $202 billion from Canada and Mexico combined in 2024.

• Automobile sales could influence the intensity of automobile manufacturing, which involves using rubber-made tyres.

• Moreover, Trump on Thursday warned BRICS member countries, which includes China, from replacing the U.S. dollar as a reserve currency by repeating a 100% tariffs threat.

• The February front-month rubber contract on the Singapore Exchange's SICOM platform STFc1 last traded at 196 U.S. cents per kg, down 0.7%.

($1 = 154.6900 yen)