Rubber markets present mixed picture amid steady supply

London – Natural rubber (NR) markets have presented a mixed picture iver the five weeks to 14 Oct, with physical rubber prices posting sharp declines during the period.

All rubber futures markets monitored by ERJ reported gains during the five-week period, with the Osaka futures for March delivery seeing a 5.3% rise.

In Shanghai, rubber contracts for January delivery rose 3.6% amid reports of stronger economic performance and in anticipation of a stimulus package, which was expected to be delivered by the Chinse government 20 Oct.

Physical rubber markets, however, posted sharp declines during the period, as supply eased, and demand remained tepid.

Favourable weather, a weak gloves market and subdued demand from China continued to weigh on physical markets, leading to further declines in key Kerala natural rubber markets as well as a 10% fall in Kuala Lumpur latex prices.