NR futures mixed as markets adjust to uncertainties

Tokyo – Natural rubber futures closed mixed on major exchanges during the trading week ended 12 May, according to Japan's JPX exchange.

In Osaka, Japan, OSE rubber futures for September delivery dropped 2% week-on-week to Yen207.6 with light trading volume, JPX reported 15 May.

On the Shanghai Futures Exchange (SHFE), however, rubber futures were up 2.1% at Yuan11,970 for September delivery amid “heavy transactions with short-covering trading”.

Also in China, INE futures closed 1% lower at Yuan9,460, facing fresh active speculative selling, continued the JPX weekly report.

Singapore’s SICOM futures for July-delivery shed 0.7% reaching $135.5, moving within a tight trading range “without any clear direction”.

Pricing trends, it said, reflected “mixed news” within the rubber market, including reports of drought and rubber tree diseases in several producing countries.

While those supported the prices, uncertainty over economic recovery in China continued to exert downward pressure, the Japanese market-tracker noted.

JPX went on to note that the daily average trading-volume of SHFE futures reached a year-high during the week.

This, it said, suggests that rubber futures trading on the Chinese exchange could become "more active and volatile” in the weeks ahead.