By Ruth Chai
Feb 4 (Reuters) -
<ul>
<li>Japanese rubber futures were on course to snap a three-day losing streak on Wednesday, supported by a weaker yen and firmer oil.</li>
<li>The Osaka Exchange (OSE) rubber contract for July delivery (JRUc6) (0#2JRU:) was up 4.2 yen, or 1.24%, at 343.3 yen ($2.20) per kg, as of 0146 GMT.</li>
<li>The rubber contract on the Shanghai Futures Exchange (SHFE) for May delivery (SNRv1) rose 160 yuan, or 0.99%, to 16,280 yuan ($2,347.68) per metric ton.</li>
<li>The most-active March butadiene rubber contract on the SHFE (SHBRv1) gained 300 yuan, or 2.3%, to 13,330 yuan per ton.</li>
<li>Rubber followed other commodities higher as sentiment recovered after a broad-based selloff on Monday led by gold and silver.</li>
<li>The yen (JPY=EBS) wobbled near a two-week low ahead of what is shaping up to be an unpredictable national election over the weekend. (USD/)</li>
<li>The yen (JPY=) was slightly softer at 156.06 per dollar, inching closer to its weakest since January 23.</li>
<li>A weaker Japanese currency makes yen-denominated assets more affordable to overseas buyers.</li>
<li>Oil prices rose, extending the previous day’s gains, after the U.S. shot down an Iranian drone and armed Iranian boats approached a U.S.-flagged vessel in the Strait of Hormuz, rekindling fears of an escalation in tension between Washington and Tehran. (O/R)</li>
<li>Natural rubber often takes direction from oil prices as it competes for market share with synthetic rubber, which is made from crude oil.</li>
<li>Lower rubber production in top producers was also supportive for rubber prices.</li>
<li>Rubber crops usually undergo a season of low production from February to May, before entering a peak harvesting period that lasts until September.</li>
<li>The front-month rubber contract on Singapore Exchange’s SICOM platform for March delivery (STFc1) last traded at 188.4 U.S. cents per kg, up 0.8%. ($1 = 156.1200 yen) ($1 = 6.9345 yuan)</li>
</ul>

Japanese rubber futures are set to end a three-day losing streak, buoyed by a weaker yen and rising oil prices. The Osaka Exchange's July rubber contract rose 1.24% to 343.3 yen per kg, while the Shanghai Futures Exchange's May contract increased by 0.99% to 16,280 yuan per metric ton. The yen is near a two-week low, making yen-denominated assets cheaper for foreign buyers. Oil prices are up due to geopolitical tensions, and lower rubber production in major producing countries is also supporting prices as the market approaches a seasonal low production period.

Reuters

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RUBBER-Japan futures set to snap three-day losing streak on weaker yen, firmer oil