Natural rubber futures show mixed outlook trading week ended June 5

TOKYO—World rubber futures presented a "mixed" picture in the trading week to June 5, amid generally quiet trading activities on major exchanges, Japan's JPX exchange has reported.

Prices closed marginally above the prior-week level on the Osaka OSE, which bucked an overall trend that saw a decline in trading volumes elsewhere, according to the June 5 report.

In China, the SHFE and INE futures each gained over one percentage point under "short-covering transactions," the report added.

In Singapore, however, futures prices on the SICOM exchange dropped 1.4 percent "due to a few buying trading flows from physical market players," JPX continued.

Overall, JPX linked last week's trading trends to continued uncertainty over the direction of China's economic recovery, with the implications that carries for natural rubber demand.

On the supply side, the report noted that dry weather conditions and drought had recently affected rubber yields in some countries—citing comments from producers.

In particular, the Association of Natural Rubber Producing Countries said a recent heat wave had impacted rubber production, which forecasted global output to near 15 million metric tons in 2023.

Elsewhere, JPX noted that the Thai government had provided $57.5 million to support smallholders struggling with a recent decline in natural rubber prices.

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