Rubber futures decline for second week in a row

Tokyo - World rubber futures prices have fallen back for a second consecutive week, Japan’s JPX reported in its review of the trading week ended 10 Feb.

“Amid quiet trading activities, all exchanges' trading volume fell sharply within a tight range of price movement, the Tokyo-based exchange reported.

Japanese traders typified the trend, with rubber futures on the Osaka OSE declining by less than 1% with light trading volume. 

In China, likewise, SHFE and INE futures fell 0.7% and 0.8% respectively, though Singapore SICOM futures dipped more markedly, down 2.4% over the course of last week. 

“Rubber market sentiment changed to bearish in the past two weeks as Chinese traders added new short positions,” JPX remarked.

This factor was evidenced by a sharp increase in the open interest on both the SHFE and INE exchanges, according to the weekly review. 

On the natural rubber supply side, JPX went on to note that the wintering season will begin at the end of this month.

However, the exchange also pointed to traders’ continued concerns over global recession as well as inflationary trends and rising interest rates in various countries.

“The Fed is expected to hike the policy rate in response to the surprisingly strong job number in January that appreciated the USD and impacted commodity and equity markets,” added JPX. 

In general, it added, global stocks closed lower and “market participants are waiting for Tuesday's US crucial CPI data, which is expected at 6.2%.”