Natural rubber futures back on an upward track

Tokyo – After sharp declines earlier in the month, natural rubber (NR) futures gained on all major exchanges during the trading week ended 31 March.

In Osaka, Japan, OSE NR futures prices rose 2.7%, while China’s SHFE and INE exchanges posted increases of 2.0% and 2.2% respectively, Japan's JPX reported.

Singapore's SICOM exchange, meanwhile, saw NR futures gain 2.2% amid active trading, JPX added in its weekly report, issued 3 April.

In general, the positive pricing trend was linked to a rally of other commodity prices, including crude oil, the Tokyo-based trading exchange explained.

Also contributing to the uptick was “a moderate US dollar” and strong recovery in global equities based on “an optimistic perspective on the recent banking turmoil”.

JPX went on to predict that NR prices would likely 'move within a tight trading range, without any clear direction over the short-term.'

The improved market sentiment, it noted, was reflected in speculative short-covering transactions ahead of an upcoming holiday break in China.