Rubber futures rise in markets lacking direction
22 May 2023
JPX reports trading volumes “sharply” down versus the previous trading week
Tokyo – Natural rubber future prices closed higher in most of the major exchanges over the trading week to 19 May, Tokyo-based JPX has reported.
Trading volumes, however, were “sharply” down versus the previous trading week across all major exchanges, added the exchange’s weekly review issued 22 May.
JPX linked the flat market dynamics to pricing trends which, it said, “moved within a tight trading range without clear directions.”
Traders in Osaka, Japan, typified the general trend, OSE rubber futures (RSS3, September delivery) rising 1.8% week-on-week to Yen211.7, “amid light new buying flows.”
In China, meanwhile, the report said SHFE/INE RSS futures for September delivery lifted 1.7% to CNY12,170, “in response to short-covering trading” as trading volumes fell significantly.
As US$c135.4, futures (TSR20, September delivery) pricing on Singapore’s SICOM exchange were unchanged from the prior week – again, amid lower trading activity.
According to the report, the physical rubber market remained tight, and consumers continued to pay premiums for nearby month deliveries, keeping futures prices stable.
“In some rubber-producing countries, short-term supplies have been impacted by lower latex yield and poorer harvests from drought and heatwaves,” JPX further noted.
