10 Sep 2024
‘Super typhoon Yagi’ on southern China, Vietnam and Thailand influences markets
Tokyo – Natural rubber (NR) futures snapped a five-week rally last week as equity markets slumped globally.
The trading week ended 6 Sept closed lower across all major Far East exchanges, with prices entering “overbought territory,” reported Japan Exchange Group (JPX) 9 Sept.
In Osaka, Japan, OSE February-2025 contract saw a sharp 6.9% week-on-week drop, while China’s SHFE and INE futures fell by 1.9% and 2.8%, respectively.
In Singapore, SICOM active December-2024 contract declined by 1.0% amid moderate trading activity and driven by long liquidation.
“Profit-taking and position reductions by speculators and commodity funds were widespread,” said JPX reporting the NR weekly trend.
Open interest, it said, declined across exchanges as traders reduced their exposure, influenced in part by the impact of ‘super typhoon Yagi’ on Southern China, Vietnam, and Thailand.
The drop in rubber prices also coincided with a slump in global equity markets as weak economic data signalled the increased likelihood of the US cutting interest rates.
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