NR prices reflect "heightened volatility" across commodity markets

Tokyo — Natural rubber futures ended the first trading week of February "mixed," with prices on Japan’s Osaka Exchange (OSE) closing higher week-on-week, according to Japan Exchange Group (JPX).

In its 9 Feb weekly NR review, JPX said market sentiment was shaped by "heightened volatility" across commodity markets.

“Speculative selling and long liquidation followed heightened volatility and sharp price swings in precious metals, particularly gold and silver,” JPX said.

Open interest, it noted, "fell sharply" across all exchanges, indicating that traders closed long positions after the recent price rally.

OSE rubber contracts for July delivery ended the week 1.6% higher than the week before, supported by a weaker Japanese yen.

By contrast, rubber prices on China’s Shanghai Futures Exchange (SHFE) and INE fell 2.9% and 2.7%percent, respectively.

In Singapore, SICOM's active April delivery contracts closed 0.8% week-on-week, weighed by "profit-taking amid light demand."

Forward curves on OSE, SHFE and INE continued to show a "contango structure", while the SICOM curve remained largely flat, JPX said.