Rubber futures markets reach eight-month high

Tokyo – Global rubber futures experienced significant gains across major exchanges during the trading week ended 1 Sept, Japan Stock Exchange (JPX) has reported.

The price surge reached an eight-month high, propelled by “aggressive fund buying”, said JPX's weekly market report, issued 4 Sept.

On Japan’s Osaka Exchange, OSE rubber futures for January delivery rallied to register a 5.6% rise, supported by a substantial trading volume of 24,417 contracts.

In China, meanwhile, SHFE rubber contracts for January delivery lifted 4.5% week-on-week, while INE futures gained 6.9%, noted the JPX trading review. 

Also on a growth-track, Singapore's SICOM exchange saw NR futures for November delivery rise 2% week-on-week, amid active trading. 

JPX said it expected “potential for upward movement” on SICOM at the beginning of the new trading week, given a big rally there on 1 Sept.

Overall, JPX said NR pricing across all its tracked markets was buoyed by optimism regarding “a forthcoming Chinese economic recovery expectation later this year”.

Sentiment, said JPX, was buoyed by the Bank of China’s rate cuts for home buyers, an upturn in Chinese manufacturing PMI for August, and Beijing efforts to boost local markets.

Depreciation of the Japanese Yen and Chinese Yuan further supported rubber prices, according to the Tokyo-based exchange.

Selected NR futures price trends on major trading exchanges