Rubber futures reach nine-month high amid continued physical demand

Tokyo – Global natural rubber futures have gained across all major exchanges, supported by continued physical demand, arbitrage activity and speculative buying.

During the week ended 9 Jan, prices climbed to their “highest level in nine months,” as trading volumes increased after the new year holidays, reported Japan Exchange Group (JPX) 12 Jan.

Open interest increased across all exchanges, pointing to the creation of new positions across the market.

Despite the gains, concerns over tighter supplies from ASEAN producers persist, warned JPX.

Physical prices, it noted, continue to trade at “a premium to futures”, reflecting ongoing supply tightness.

In Osaka, Japan, the OSE's rubber contract for June closed 0.6% higher week-on-week in active trading.

In Shanghai, China, SHFE prices ended the week up 2.2%, while INE rubber rose 1.9% compared to the week before.

Singapore’s SICOM rubber futures settled 1.2% higher, supported by fresh buying interest.