Rubber futures mixed over last trading week

Tokyo – Natural rubber futures in Far East markets closed generally mixed for the week ended 5 May, with “quiet transactions”, according to Japan Stock Exchange JPX.

The prices moved within a tight trading range due to labour day national holidays in Japan and China, said JPX in its weekly report 8 May.

In Japan, OSE rubber futures closed 2% higher week-on-week in active trading, with September-delivery contracts closing at Yen212.3, while Singapore’s SICOM closed “marginally lower” at $135.7 for July-delivery contracts.

China’s SHFE and INE futures faced new selling pressures after opening from three-day holidays and closed 0.4% lower.

According to JPX, weather conditions have been “dry and warm” in most producing areas, including Yunnan, China, Thailand; and Malaysia.

This follows a Bloomberg report earlier in May indicating that rubber production may be affected in China due to a drought that “has persisted for more than a month”.

As weather conditions affect supply, JPX expects rubber prices to remain steady in response to “optimistic economic recovery and car sales improvement in China”.