Natural rubber markets gain as crude oil prices rise

Japanese Osaka Exchange rubber contract for July delivery closed 6% higher on 11 Feb at Yen253.8/kg, compared to 28 Jan. 

Shanghai Futures’ weekly average for the most active rubber contract for May and front-month rubber contract on Singapore Exchange's SICOM platform for March delivery posted gains of 2.3% and 3.1% respectively. 

The futures markets were supported by surging benchmark crude oil prices amid quiet trading which followed the week-long Chinese new year holidays. 

Physical markets generally traded range-bound, with Kuala Lumpur latex posting a 5.8% increase over the two-week period. 

Unusual ‘intermittent’ wintering season, compared to blanket wintering, have affected production and supply, leading to volatile prices, said Denis Low, the immediate past president of the Malaysian Rubber Glove Manufacturers Association to Bernama.