Rubber futures hit ‘multi-year highs’ on Middle East tensions

Tokyo – Natural rubber futures rose “sharply” across major exchanges during the trading week ended 25 Sept, according to Japan Exchange Group (JPX).

Prices were supported by strong physical demand, weather-related supply concerns and persistently high crude oil prices, JPX said 28 Sept.

In Osaka, Japan, OSE’s February-2027 rubber contract closed 4.4% higher week-on-week amid “light short covering” during a holiday-shortened trading week.

Prices broke through “multi-year highs”, with weekly trading volume increasing.

In Shanghai, China, SHFE rubber rose 3.6%, while INE rubber futures gained 5.7% compared with a week earlier.

The increases reflected fresh buying by commodity funds and speculators, with an estimated 300 kilotonnes of rubber futures purchased across the SHFE and INE markets, said JPX.

In Singapore, SICOM’s active December-2026 contract climbed 6.7% week-on-week, reaching “its highest closing level this year and in several years.”

The Singapore market was supported by “strong physical demand and arbitrage buying,” while weekly open interest increased sharply.

According to JPX, prices were lifted by supply concerns as El Nino-related drought conditions in rubber-producing countries continued to affect tapping activity.

Furthermore, “persistent high crude oil prices and no signs of easing tensions in the Middle East and the Straits of Hormuz kept rubber futures prices well supported.”