27 Aug 2024
Markets also supported by decline in global interest rates which has contributed to weakening of the dollar
Tokyo – Natural rubber (NR) futures continued to gain for a third week in a row, amid concerns over supply constraints in several producing countries.
NR markets closed the trading week ended 23 Aug higher across all major rubber exchanges, supported by rising prices for synthetic rubber and concerns of production shortfall.
These developments "prompted speculators to take long positions, leading to a rise in prices,” Japan Exchange Group (JPX) reported 26 Aug.
In Osaka, Japan, OSE rubber saw a significant rally, increasing 6.1% week-on-week, while prices on China's SHFE and INE exchanges increased by 1.3% and 1.0%, respectively.
On Singapore's SICOM exchange, the commodity gained 2.4% compared to the week before, supported by fresh speculative- and physical-buying interest.
Additionally, JPX noted that the onset of the 'rainy season' was contributing to bullish sentiment, as it could impact tapping activities in key producing regions.
Furthermore, markets were also supported by an anticipated decline in global interest rates, which is contributing to a weakening of the US dollar.
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