RUBBER-Japan futures set for weekly gain on soft yen, robust demand

Oct 24 (Reuters) – * Japanese rubber futures rose on Friday and were on track for a weekly gain, buoyed by stronger oil, a softer yen and robust demand. * The Osaka Exchange (OSE) rubber contract for March delivery was up 3.8 yen, or 1.23%, at 312.8 yen($2.07) per kg, as of 0230 GMT. * The contract has risen 2.86% so far this week. * The rubber contract on the Shanghai Futures Exchange (SHFE) for January delivery rose 125 yuan, or 0.82%, to 15,350 yuan ($2,154.99) per metric ton. * The most-active November butadiene rubber contract on the SHFE gained 70 yuan, or 0.63%, to 11,175 yuan per ton. * The yen was flat at 152.58 per dollar after softening in the previous session. * A weaker Japanese currency makes yen-denominated assets more affordable to overseas buyers. * Oil prices dipped after the previous day's surge, but remained on track for weekly gain after fresh U.S. sanctions on Russia's two biggest oil companies fuelled supply concerns. * Natural rubber often takes direction from oil prices as it competes for market share with synthetic rubber, which is made from crude oil. * An increase in supply is anticipated for the fourth quarter, while demand continues to be buoyed by healthy operating rates and ongoing strength in tire exports, placing the rubber market in a dual-growth scenario for both supply and demand, said Chinese market research firm Chaos Tiancheng Research. * Top rubber producer Thailand's meteorological agency warned of heavy rains and accumulations that may cause flash floods and overflows in the south in its weather forecast from October 23-29. * Rubber production in Thailand is concentrated in the south. * The front-month rubber contract on Singapore Exchange's SICOM platform for November delivery last traded at 174.7 U.S. cents per kg, up 0.6%. ($1 = 150.7800 yen) ($1 = 7.1230 Chinese yuan) (Reporting by Lucas Liew; Editing by Subhranshu Sahu)

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