Rubber futures register ‘sharpest weekly decline’ on strong supply, lower crude

Tokyo – Natural rubber (NR) futures ended the final full trading week of June “sharply lower,” amid stronger supply and lower crude prices.

Over the week ended 26 June, commodity funds and speculators were estimated to have unwound long positions, triggering widespread stop-loss selling, reported Japan Exchange Group (JPX).

In its 29 June weekly report, JPX said it was is estimated that more than 250,000 tonnes of rubber futures contracts were liquidated across the SHFE and INE markets during the week.

This, it said, resulted in "the sharpest weekly price decline this year."

Prices, JPX said, were influenced by expectations of higher interest rates that supported a stronger US dollar, a decline in WTI crude oil prices below $70pbl, and improving NR supply as major ASEAN producing countries ramped up production following the wintering season.

Bearish sentiment was further reinforced by "a broad sell-off" in global equity markets, led by weakness in AI and semiconductor-related stocks.

In Osaka, Japan, OSE’s November contract closed 7.7% lower week-on-week, marking its “steepest weekly decline this year” after several months of setting successive multi-year highs.

In Shanghai, China, SHFE and INE rubber futures declined 6.6% and 7.1%, respectively week-on-week.

In Singapore, SICOM’s September rubber contract closed the week 8.6% lower, with 25 June posting the “largest single-day decline of the year.”