Rubber futures retreat following recent rally

Tokyo – Natural rubber futures retreated across major exchanges in the first trading week of September, following a recent surge that left prices “technically overbought.”

All major exchanges reported declines during the week ended 4 Sept, with “profit-taking and position adjustments” prompting a retracement, according Japan Exchange Group (JPX) 7 Sept.

In Osaka, Japan, OSE’s February-2027 rubber contract settled 3.3% lower over the week before, while in Shanghai, SHFE and INE rubber prices declined 0.2% and 0.4%, respectively.

OSE weekly trading activity, said JPX, increased as traders rolled positions from the January to February contract, with weekly volume rising.

In Singapore, SICOM rubber, which often serves as a reference for physical market prices, ended the week down 0.9%.

According to JPX, the El Nino weather pattern has continued to support prices, particularly for agricultural commodities such as rubber and palm oil, amid concerns over potential impacts on production and supply.