Strong speculative buying drives rubber futures
Commodity funds purchase about 700 kilotonnes of rubber futures across Chinese markets
Tokyo – Chinese stock market rally, inflation concerns and trade barriers drove natural rubber (NR) futures in the second trading week of February.
The trading week ended 14 Feb saw NR futures strengthen across all rubber exchanges, driven by strong speculative and commodity hedge fund buying on China’s SHFE and INE markets.
It is estimated that commodity funds purchased approximately 700,000 tonnes of rubber futures across Chinese exchanges, reported Japan Exchange Group (JPX) 17 Feb.
In Osaka, Japan, OSE July-2025 active rubber contract rose 0.8% week-on-week in moderate trading.
Meanwhile, SHFE and INE rubber surged 2.0% and 3.4%, respectively, on strong trading volumes and fresh buying interest.
In Singapore, SICOM’s active May-2025 rubber contract gained 4% on the previous week amid renewed buying momentum.
“Optimism in Chinese stock markets fuelled the rally, alongside concerns over higher global inflation and the impact of the 10% tariffs imposed by the US,” said JPX.
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