Rubber futures extend gains on supply concerns

Tokyo – Natural rubber futures continued to strengthen in the first full trading week of October, with prices rising across all major exchanges amid continued concerns over supply.

Over the week ended 9 Oct, OSE's March-2027 contract closed 2.0% higher week-on-week in “quiet trading,” according to Japan Exchange Group (JPX).

Prices closed “at their highest level this year and the highest since 2011,” with the market remaining technically bullish.

JPX said "a light correction" could emerge following the recent gains, but such a move was likely to attract renewed buying interest.

In Shanghai, China, SHFE and INE rubber futures rose 2.6% and 1.9% respectively after markets reopened following the week-long golden week holiday.

Singapore's SICOM market also strengthened, supported by consumer buying interest.

The January-2027 contract gained 2.0% week-on-week, reaching its "highest level this year and the highest since 2013."

JPX said the bullish trend was likely to persist until El Nino-related weather disruptions eased, potentially allowing prices to retreat.

According to the JPX report, weather conditions have continued to affect supplies in major rubber-producing countries.

Meanwhile, heavy rain and flooding in Thailand forced some Japanese car makers, including Toyota and Honda, to suspend production temporarily.

During the week, JPX said, Chinese commodity funds and speculators were estimated to have accumulated around 400 kilotonnes of futures positions across the SHFE and INE markets during the week.