Rubber futures prices weaken as markets lack direction

Tokyo - Natural rubber (NR) futures closed the trading week ended 24 Nov with mixed results, including more pronounced selling on RSS3 than TSR20 grades.

Overall, prices declined across most major exchanges, with Japan’s OSE rubber futures for the active April contract dropping 1.2% week-on-week, said Japan Stock Exchange (JPX).

With trading activities “generally subdued”, JPX said prices “are congested and will likely move within Yen260.0 - Yen269.0 levels in sideways trading,” JPX added in its latest weekly report.

In China, SHFE and INE rubber futures fell by 3.1% and 3.0% respectively, while SICOM TSR closed slightly up on prior-week levels, noted the trading review issued 27 Nov.

Amid “mixed and unclear market sentiment”, JPX pointed to the potential for market-consolidation over the next few weeks with a possible "upside bias".

Physical rubber markets have exhibited some 'arbitrage buying', likely influenced by seasonal year-end rubber demand, the report added.

Selected NR futures price trends on major trading exchanges