JPX: Rubber Futures Entering ‘Consolidation Phase’

According to the Japan Exchange Group (JPX), natural rubber futures have ended the second week of June lower across all major Far East exchanges due to ‘persistent selling pressure and liquidation of long positions.’ This decline is attributed to commodity funds and speculators reducing their long positions in rubber futures. In Shanghai, it is estimated that over 300,000 tonnes of long positions were reduced. Following a strong rally over the past two months, JPX believes that rubber prices are now entering a ‘consolidation phase.’ The November rubber contract in Osaka, Japan, settled 0.8% lower week-on-week, while SHFE and INE rubber futures declined 1.9% and 2.6%, respectively, amid heavy long liquidation. SICOM’s August contract in Singapore closed 2.0% lower due to profit-taking. Rising inflationary pressures and expectations of tighter monetary policies from major central banks have also weighed on commodity markets. The Japan Exchange Group’s market update on 15 June provided these insights, highlighting the current state of the rubber futures market.