Rubber futures gain slightly as flooding disrupts supply

Tokyo – Natural rubber pricing gained slightly during the week to 20 June, on concerns over supply, according to Japan Exchange Group (JPX).

Rubber futures ended the week “slightly firmer” across all major exchanges, trading within a tight range throughout the week, said JPX 23 June.

Heavy rain and flooding in parts of southern China, Vietnam, and Thailand prompted some short-covering activity.

Open interest, meanwhile, declined across most exchanges, except the OSE RSS, in response to closing short positions.

In Osaka, Japan, OSE’s November rubber contract was up 1.1% week-on-week in quiet trading, while OSE Shanghai rubber for September delivery remained flat.

In Shanghai, SHFE and INE closed higher by 1.0% and 0.6%, respectively.

In Singapore, SICOM’s active September contract ended 0.5% higher compared to the week before.

According to JPX, geopolitical tensions in the Middle East, subdued tire demand from consumers, and uncertainty surrounding the Chinese economy due to US trade tensions weighed on market sentiment.