Rubber futures hit two-month high amid Thai flooding, heavy rains

Japan – Natural rubber (NR) futures continued to gain for the second week in a row amid higher Chinese commodity prices and supply concerns.

The first full trading week of December ended higher across all major rubber exchanges in the Far East, Japan Exchange Group (JPX) reported 9 Dec.

Strong buying by speculators and Chinese commodity funds pushed prices to their highest levels in two months, according to JPX.

Prices were also driven by heavy rain and floods reported in major producing countries such as Thailand, Vietnam, Malaysia, and Indonesia.

In Osaka, Japan, OSE rubber contract for May 2025 delivery rose 4.2% week-on-week in moderate trading, as “improved market sentiment” lifted prices.

In China, SHFE and INE rubber futures advanced 3.5% and 5.8%, respectively, compare to the week before.

In Singapore, SICOM’s active March 2025 rubber contracts gained 4.2% week-on-week in active trading.

JPX noted that flooding in five provinces in southern Thailand disrupted rubber tapping across 800,000 hectares of plantations.

The impact of the flooding, it said, is expected to last for six weeks.

The rubber market's stronger sentiment was further bolstered by a recovery in global stock markets and growing anticipation of an additional US interest rate cut.