Rubber futures drift as crude oil rallies

Natural rubber futures ended the third week of July with little net change, trading sideways across major exchanges as crude oil prices surged amid Middle East tensions. According to Japan Exchange Group’s 27 July report, the rubber market showed “no clear directional trend” despite the upward pressure on crude prices. Trading volumes remained subdued, with prices confined to narrow ranges throughout the week.

On 24 July, the December-2026 rubber contract on Japan Exchange Group’s Osaka Exchange (OSE) settled 0.8% lower week-on-week. In Shanghai, the December-2026 contract on the Shanghai Futures Exchange (SHFE) rose 0.4%, while the INE contract increased 0.1%. Meanwhile, the October-2026 contract on Singapore’s SICOM closed 0.14% higher in relatively light trading.

The mixed performance came despite escalating geopolitical risks in the Middle East, which typically influence both crude oil and rubber markets due to their shared feedstock and energy-intensive production processes. Japan Exchange Group described the overall market sentiment as a “mixed picture” across Far East exchanges, with no single trend dominating trading activity.