Rubber futures edge lower for second consecutive week

Tokyo – Natural rubber (NR) futures closed the third trading week of October slightly lower across most Far East exchanges, as profit-taking and fund liquidation continued for a second consecutive week.

Despite the slight decline in prices, market sentiment remained steady, supported by continuing concerns over NR supply, reported Japan Exchange Group (JPX) in its weekly report 26 Oct.

"Raw materials remained scarce in some producing countries, including Indonesia, while El Nino-related weather conditions continued to affect cup-lump quality and tapping activities," the report added.

In Osaka, Japan, rubber contract for March 2027 fell 0.5% week-on-week amid quiet trading.

Here, JPX said, trading “remained muted, with prices moving within a narrow range throughout the week.”

Although prices ended slightly lower, market sentiment “remains steady, and the broader uptrend remains intact,” the exchange group added.

On China's SHFE and INE exchanges, meanwhile, rubber futures declined 1.5% and 1.0%, respectively, amid “heavy liquidation,” JPX said.

The market, it noted, expected commodity funds and speculators to "close out" about 300 kilotonnes of futures positions across the Chinese exchanges.

In Singapore, SICOM's January-2027 contract ended the week “virtually unchanged from the previous week.”

Here, JPX said prices appear to be “taking a breather, with market consolidation likely to continue for another couple of weeks.”