NR futures close lower on 'pressures of long liquidation'

TOKYO—World rubber futures markets saw a general easing of prices over the trading week to Oct. 20, reflecting "pressures of long liquidation and selling by commodity funds," Japan Exchange Group (JPX) has reported.

In Osaka, however, rubber futures increased by 1.1 percent week-on-week on Japan's OSE exchange, according to JPX's Oct. 23 report, which noted that the uptick was driven mainly by 'short-covering.'

"Notably, the (OSE) front Oct-2023 contract experienced a significant surge due to limited market liquidity and challenges in obtaining physical rubber for delivery," JPX added.

On China's SHFE and INE commodity exchanges, rubber futures prices decreased by 1.1 percent and 2.1 percent, respectively, as "fund managers actively engaged in long liquidation following a recent rally."

In Singapore, meanwhile, JPX linked a 3.0-percent decline in SICOM rubber futures "primarily attributed to long liquidation and selling by rubber producers."

Overall, JPX said rubber futures prices had "retraced from a technically overbought condition, and this adjustment aligns with a decrease in open interest across all exchanges."

Reviewing related developments, JPX said rubber futures could be boosted by the impact of heavy rains on supply in major producing countries such as Thailand, Malaysia and Vietnam.

Also likely to support prices, it said, was a 10.7-percent increase in China's total vehicle sales at the end of September, and a higher-than-expected, 4.9-percent rise in China's third quarter GDP.