Rubber futures mixed amid efforts to ‘turn market’

Tokyo – Natural rubber (NR) futures closed the last trading week with mixed results across major Far East rubber exchanges, Japan Exchange Group (JPX) has reported.

Over the five days to 11 Aug, volumes dropped across all exchanges, “reflecting trading within a narrow range,” according to JPX's weekly review issued 14 Aug.

But the picture was mixed, depending on the commodity: RSS3 price trends revealed weaker sentiment, while TSR20 showed gains for the week.

In Osaka, Japan, OSE rubber futures for December delivery slipped by 0.5% in subdued trading, despite a year-high 17,771 contracts of open interest.

In China, SHFE futures dropped slightly while on the INE, TSR20 prices increased by 1.4% due to position closures and short covering. 

On Singapore’s SICOM exchange, rubber futures rose 1.0%, driven by “light speculative buying activity,” the report continued. 

Overall, the Japanese exchange's analysis linked the weak pricing trends to “China's looming deflationary concerns.” 

“Gloomy economic conditions amplified the expectation of weaker rubber demand, pushing rubber prices to a continuing downward trend,” its report added. 

JPX went on to note efforts by major rubber producers Indonesia and Thailand to “turn the market trend” via partnership to address the challenges of the industry.  

Selected NR futures price trends on major trading exchanges