Rubber futures rally as heavy rain impacts supply

Tokyo – Natural rubber futures have risen sharply on supply concerns and optimism over a Chinese economic recovery.

Prices closed the week ended 25 July higher across all major exchanges, supported by concerns over potential supply disruptions from recent typhoons and heavy rain in key producing regions.

The adverse weather raised fears of tapping and delivery delays, said Japan Exchange Group (JPX) 28 July.

Additionally, prices were supported by optimism over potential economic stimulus from the Chinese government to offset the impact of US tariffs.

In Osaka, Japan, OSE's December contract closed nearly 1% higher week-on-week in light trading.

In Shanghai, China, SHFE and INE rubber contracts for January 2026 delivery surged 4.5% and 3.7%, respectively.

In Singapore, SICOM’s October rubber contracts rallied 6.4% week-on-week, driven by “active speculative and commercial players' buying.”

In addition, JPX said a rumour that some rubber factories were increasing purchases ahead of the year-end EUDR compliance deadline helped push up prices.