Natural rubber futures drop sharply amid slowing Chinese economy
“Commodity hedge funds were rumoured to be significant sellers, particularly on the SHFE markets,” according to JPX
Tokyo - Natural rubber (NR) futures ended the final trading week of May "sharply lower" across all major exchanges with increased trading volume.
All major Far East markets posted significant week-on-week declines for the week ended 30 May, amid renewed concerns over a slowing Chinese economy and ongoing trade tensions between the US and China, reported Japan Exchange Group (JPX) 2 June.
Prices came under further pressure as NR production resumed fully in the northern hemisphere following the end of the wintering season.
According to JPX, the market “was hit by a wave of fresh speculative selling, further exacerbated by stop-loss orders that accelerated the downward momentum.”
Commodity hedge funds, JPX added, “were rumoured to be significant sellers, particularly on the SHFE markets.”
In Osaka, Japan, October deliver RSS rubber futures fell 7.4% week-on-week, while the newly launched OSE Shanghai NR futures settled at Yuan13,130 with weekly volume of 700 lots and open interest of 327 lots.
In Shanghai, China, SHFE and INE rubber declined by 7.6% and 4.4%, respectively.
In Singapore, SICOM’s active August delivery rubber dropped 6.1% compared the week before.
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