JPX: Rubber futures entering ‘consolidation phase’

Tokyo – Natural rubber futures ended the second week of June lower across all major Far East exchanges amid “persistent selling pressure and liquidation of long positions,” according to Japan Exchange Group (JPX).

In a 15 June market update, JPX said commodity funds and speculators are estimated to have reduced their long positions in rubber futures.

In Shanghai, China, JPX said it was estimated that “more than 300,000 tonnes” of long positions were reduced.

“Following the strong rally over the past two months, rubber prices appear to be entering a consolidation phase,” said JPX.

In Osaka, Japan, OSE’s November rubber contract settled 0.8% lower week-on-week “in quiet trading.” Weaker prices on the Chinese exchanges also weighed on OSE rubber.

Meanwhile, SHFE and INE rubber futures declined 1.9% and 2.6%, respectively, “amid heavy long liquidation,” said JPX.

In Singapore, SICOM’s August contract closed 2.0% lower than the week before on “profit-taking,” JPX said.

In addition, the weekly report noted that rising inflationary pressures and expectations that major central banks may adopt tighter monetary policies continued to weigh on commodity markets.