Rubber Futures Register Sharpest Weekly Decline on Strong Supply, Lower Crude

Natural rubber (NR) futures ended the final full trading week of June sharply lower, amid stronger supply and lower crude prices. According to the Japan Exchange Group (JPX), commodity funds and speculators unwound long positions, triggering widespread stop-loss selling. Over 250,000 tonnes of rubber futures contracts were liquidated across the SHFE and INE markets during the week, resulting in the sharpest weekly price decline this year. Prices were influenced by expectations of higher interest rates, a stronger US dollar, and a decline in WTI crude oil prices below $70 per barrel. The bearish sentiment was further reinforced by a broad sell-off in global equity markets, led by weakness in AI and semiconductor-related stocks. In Osaka, Japan, the OSE’s November contract closed 7.7% lower week-on-week, marking its steepest weekly decline this year. In Shanghai, China, SHFE and INE rubber futures declined 6.6% and 7.1%, respectively, week-on-week. In Singapore, SICOM’s September rubber contract closed the week 8.6% lower, with June 25 posting the largest single-day decline of the year.