Rubber futures continue to gain on supply concerns

Tokyo – Natural rubber futures continued to gain in the final trading week of August, nearing multi-year highs in Singapore, according to Japan Exchange Group (JPX).

All Far East exchanges reported gains during the week ended 28 Aug as weather concerns and the potential impact of El Nino heightened risks to rubber production and supply, JPX said 31 Aug.

Dry weather conditions across major Southeast Asian rubber-producing countries also provided further support to rubber prices.

In Osaka, Japan, OSE's January-2027 contract ended the week up 0.4% in “generally quiet trading, with rollover activity from the January to February contract beginning,” said JPX.

In Shanghai, China, SHEF’s January back-month contract rose 1.7% week-on-week while INE’s November delivery contracts rose 1.5% compared to the week before.

In Singapore, SICOM's active November-2026 contract closed up 2.7% week-on-week, “its highest level in the past three months.”

“Strong commercial and speculative buying,” said JPX, continued to push prices toward “multi-year highs.”

According to JPX, Chinese commodity funds and speculators were expected to be the main buyers.

They are, it said, “estimated to have accumulated about 800,000 tonnes of rubber futures positions on the SHFE and INE markets over the past two weeks.”