By Ruth Chai
May 12 (Reuters) -
<ul>
<li>Japanese rubber futures are range-bound on Tuesday as traders are uncertain about supply from top producer Thailand, whose rubber trees are approaching peak seasonality amid heavy rains that are hampering tapping.</li>
<li>The Osaka Exchange (OSE) rubber contract for October delivery (JRUc6) (0#2JRU:) was up 3.9 yen, or 0.94%, at 417 yen ($2.65) per kg as of 0156 GMT.</li>
<li>The rubber contract on the Shanghai Futures Exchange (SHFE) for September delivery (SNRv1) rose 110 yuan, or 0.62%, to 17,920 yuan ($2,636.30) per metric ton.</li>
<li>The most active June butadiene rubber contract on the SHFE (SHBRv1) gained 210 yuan, or 1.37%, to 15,580 yuan per metric ton.</li>
<li>Rubber prices are range-bound as traders expect supply to ease as Southeast Asian rubber trees approach the peak harvesting period, though weather-related concerns still linger.</li>
<li>The prices of Thailand’s benchmark export-grade smoked rubber sheet (RSS3) (RUB-RSS3C-BKK) and block rubber (RUB-STR20C-BKK) were both down around 0.5% to stand at 97.77 and 78.5 baht per kg, respectively.</li>
<li>However, the meteorological agency of top producer Thailand warned of heavy rain and flash floods in the south, where the country’s rubber plantations are concentrated, over the next week.</li>
<li>In addition, higher oil prices support natural rubber prices, as its substitute, synthetic rubber, is made from crude oil.</li>
<li>Oil prices rose in early Asian trade on Tuesday as negotiations to end the war between the United States and Iran appeared fragile, with Tehran’s response to a U.S. proposal highlighting stark differences that kept supply concerns alive. (O/R)</li>
<li>Traders are also eyeing U.S. President Donald Trump’s visit to China, where deals on agriculture and commercial aviation are said to be discussed.</li>
<li>The visit is expected to generate positive news, which could boost market sentiment, a Singapore-based rubber trader said.</li>
<li>The front-month rubber contract on Singapore Exchange’s SICOM platform for June delivery (STFc1) last traded at 222.2 U.S. cents per kg, down 0.5%.</li>
</ul>
($1 = 157.5200 yen)
($1 = 6.7974 yuan)

RUBBER-Japan futures range-bound on supply uncertainty