Natural rubber futures gain for third week in a row

Tokyo – Natural rubber (NR) future pricing has registered gains on Far East markets for a third consecutive week, Japan Exchange Group (JPX) reported 27 May.

And, forecasting a continuation of the trend, JPX said NR prices are expected to “stay firm” in the near-term amid bullish market sentiment.

Rubber futures, it noted, rose across all major Far East markets during the trading week ended 24 May “driven by short covering and fresh speculative buying interest.”

Prices were buoyed by concerns about supply from major producing countries and optimism about an economic recovery in China, added the latest JPX trading report.

In Osaka, Japan, OSE rubber futures increased by 2.9% week-on-week, while China’s SHFE and INE futures were up 2.3% and 3.9% respectively amid strong trading volumes.

In Singapore, SICOM rubber futures closed 2.8% higher week-on-week, due to fresh buying interest, the Japanese group's data also shows.

In particular, JPX linked the gains to optimism about the Chinese economy, following measures by the government to stabilise property prices and address unsold homes.

Additionally, it noted, the Chinese government has sold long-term government securities to raise funds and stimulate the economy.