Rubber futures strengthen on El Nino effects

Tokyo – Natural rubber futures closed the final trading week of August higher across all exchanges, supported by both commercial and speculative buying, according to Japan Exchange Group (JPX).

Among other factors, expectations that El Nino conditions could affect production supported the price gains during the week ended 21 Aug, said JPX.

“Declining official rubber inventories at [Shanghai’s] SHFE and INE warehouses, and firmer crude oil prices boosting synthetic rubber prices prompted renewed buying,” said JPX in a 24 Aug report.

In Osaka, Japan, OSE’s January-2027 rubber contracts settled 4.4% higher week-on-week, supported by “strong buying interest from overseas Chinese markets.”

In Shanghai, SHFE and INE rubber contracts closed 4.3% and 5.4%, respectively, according to JPX.

In Singapore, SICOM's November-2026 contract advanced 5.1% week-on-week as “strong overseas Chinese markets and commercial arbitrage buying kept prices firm throughout the week.”