Weather, forest fires push up natural rubber futures

Tokyo – Natural rubber futures rose across major exchanges during the trading week ended 11 Sept, supported by weather-related supply concerns and stronger crude oil prices.

Market participants added new long positions during the week, with prices rising across all major exchanges, said Japan Exchange Group (JPX) 14 Sept.

In Osaka, Japan, OSE’s February-2027 contract ended the week 0.7% higher week-on-week, with trading activity “remaining relatively light.”

Prices, JPX said, were partly weighed down by a stronger Japanese yen ahead of a possible Bank of Japan rate hike and potential currency intervention by Japan’s finance ministry.

In Shanghai, China, SHFE rubber ended 3.0% higher and INE rubber gained 3.7% compared to a week ago, according to JPX.

In Singapore, SICOM’s active November-2026 rubber rose 3.7%, supported by “active futures buying interest.”

According to JPX, SICOM prices have broken through a multi-year high, suggesting that the upward trend could continue, although a correction towards the 233-235 cents/kg range remains possible.

JPX linked the firmer market to strong crude oil prices as well as El Nino-related dry weather and drought conditions.

In Indonesia, meanwhile, forest fires and resulting heavy haze have affected rubber tapping and harvesting activities in neighbouring countries, adding to supply concerns.