27 Nov 2024
Uncertainty caused by the approval of EUDR amendments slows down trading
Tokyo – Natural rubber (NR) futures were steady during last week, following a sharp decline earlier in the month.
The trading week ended 22 Nov saw little price movement amid subdued trading.
“Trading volumes declined significantly across all exchanges as prices remained range-bound, reflecting uncertain market sentiment,” reported Japan Exchange Group (JPX) 25 Nov.
In Osaka, Japan, OSE's April-2025 contract rose 1.9% week-on-week in quiet trading.
Meanwhile, China’s SHFE rubber edged up 1.0% compared to the week before, as INE rubber remained flat.
In Singapore, SICOM’s active February-2025 rubber contract closed marginally higher by 0.3% compared the week before, also in light trading.
JPX linked the general negative pricing trend for the past two weeks to a decision by the EU Parliament to approve a one-year extension of the EU deforestation regulation (EUDR). (ERJ report)
The decision, it said, “has created uncertainty and weakened market sentiment, leading to reduced trading interest and lower trading activity.”
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