Rubber futures depict mixed picture as markets remain weak

Tokyo – Natural rubber (NR) futures remained week during the trading week ended 3 Aug, with major exchanges reporting a mixed picture in the Far East.

Generally, RSS3 futures were slightly weaker compared to the previous week, while TSR20 rubber closed marginally higher, latest data by Japan Exchange Group (JPX) shows.

In Osaka, Japan, OSE contract for January delivery fell marginally, in moderate trading, JPX reported 5 Aug.

In China, SHFE remained flat week-on-week while INE reported gains of 1.2% compared to the week before.

In Singapore, SICOM rubber contracts for November increased 2% week-on-week, in “generally quiet trading.” 

JPX linked the SICOM price uptick to "short covering and light speculative buying."

Overall, trading volumes in both the OSE and INE markets increased, but volumes in the SHFE and SICOM markets fell sharply.

Prices, JPX noted, largely traded “sideways,” with market sentiment remaining “cautious yet stable.”

Furthermore, the report noted that concerns about slowing Chinese demand and a potential global recession are keeping rubber prices under pressure.