Rubber futures inch up amid moderating trade activities
21 Nov 2022
Positive US-China talks help to support trading on Chinese markets
Tokyo – Natural rubber future prices closed slightly higher during the trading week ended 18 Nov, amid a moderating level of trading activity.
Volumes dropped in trading characterised by producer selling and profit-taking transactions, Japan Stock Exchange (JPX) reported in its weekly update issued 21 Nov.
In Osaka, Japan, OSE future prices closed marginally higher, while on China’s SHFE and INE exchanges futures rose 1.4% and 1.2% week-on-week, respectively.
JPX linked the gains partly to the positive talks between US president Joe Biden and Chinese leader Xi Jinping during the G20 summit on 14 Nov.
The talks, it said, led to a rally in the Chinese markets.
Another contributing factor was strong cyclical yearend demand from Chinese traders, who tend to purchase rubber futures - January-2023 contracts - that will expire before the Chinese New Year in February.
In Singapore, meanwhile rubber futures on the SICOM exchange rose marginally mostly on “profit-taking and producers' light selling transactions,” JPX added.
Reviewing broader economic developments, JPX noted some negative trends in China, including a 4% month-on-month decline in vehicle sales for October, to 2.5 million units.
In addition, China had reported an increased number of new Covid cases, which JPX said would “cast a dark cloud” over stocks and rubber prices.