Rubber futures prices edge upwards in quiet trading

Tokyo – World rubber futures presented a “mixed” picture in the trading week to 5 June, amid generally quiet trading activities on major exchanges, Japan’s JPX exchange has reported.

Prices closed marginally above the prior-week level on the Osaka OSE, which bucked an overall trend that saw a decline in trading volumes elsewhere, said the report issued 5 June.

In China, the SHFE and INE futures each gained over one percentage point under “short-covering transactions”, added the weekly trading review.

In Singapore, however, futures prices on the SICOM exchange dropped 1.4% “due to a few buying trading flows from physical market players,” JPX continued.

Overall, JPX linked last week’s trading trends to continued uncertainty over the direction of China's economic recovery, with the implications that carries for natural rubber demand.

On the supply side, the report noted that dry weather conditions and drought had recently affected rubber yields in some countries – citing comments from producers.

In particular, the Association of Natural Rubber Producing Countries said a recent heatwave had impacted rubber production, which forecasting global output to near 15 million tons in 2023.

Elsewhere, JPX noted that the Thai government had provided $57.5 million (€53.8 million) to support smallholders struggling with a recent decline in natural rubber prices.

 Natural rubber futures price trends on main trading exchanges