Rubber futures dip as weather conditions improve
Flooding subsided in Thailand, Vietnam and Malaysia with only scattered showers last week
Tokyo – Natural rubber (NR) futures declined last week as supply concerns, driven by bad weather conditions, eased in the second trading week of December.
NR futures closed the week ending 13 Dec lower across all major exchanges, driven by “speculative selling and long liquidations by commodity funds,” reported Japan Exchange Group (JPX) 16 Dec. 24
The development followed improved weather conditions in rubber-producing countries, as flooding subsided in Thailand, Vietnam, and Malaysia, with only scattered showers reported.
In Osaka, Japan, OSE’s active May-2025 delivery contract declined by 2.4% week-on-week in light trading, while SHFE and INE rubber fell by 2.2% and 3.7%, respectively.
In Singapore, SICOM rubber for March 2025 delivery dropped by 2.9% compared to the week before, mainly due to speculative selling pressure.
According to JPX estimates, during the week, Chinese commodity funds liquidated about 63%, equivalent to 420,000 tonnes, of the long positions established the week before.
Furthermore, the report said rubber prices are expected to remain volatile as companies engage in “year-end window dressing and position adjustments.”
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