Rubber Futures Retreat After Recent Rally

Natural rubber futures declined across major exchanges in the first week of September, following a recent surge that left prices ‘technically overbought.’ According to the Japan Exchange Group (JPX), profit-taking and position adjustments prompted a retracement. The Osaka Exchange (OSE) reported a 3.3% decline in its February 2027 rubber contract, while the Shanghai Futures Exchange (SHFE) and the Shanghai International Energy Exchange (INE) saw declines of 0.2% and 0.4%, respectively. The Singapore Commodity Exchange (SICOM) rubber price also ended the week down 0.9%. Despite the decline, El Nino concerns continue to support rubber prices, particularly for agricultural commodities such as rubber and palm oil, amid concerns over potential impacts on production and supply.