TOKYO—Natural rubber futures declined last week as supply concerns, driven by bad weather conditions, eased in the second trading week of December.
NR futures closed the week ending Dec. 13 lower across all major exchanges, driven by "speculative selling and long liquidations by commodity funds," the Japan Exchange Group (JPX) reported in its weekly filing Dec. 16.
The development followed improved weather conditions in rubber-producing countries, as flooding subsided in Thailand, Vietnam and Malaysia, with only scattered showers reported.
In Osaka, Japan, OSE's active May 2025 delivery contract declined by 2.4 percent week-on-week in light trading, while SHFE and INE rubber fell by 2.2 percent and 3.7 percent, respectively.
In Singapore, SICOM rubber for March 2025 delivery dropped by 2.9 percent compared to the week before, mainly due to speculative selling pressure.
According to JPX estimates, during the week, Chinese commodity funds liquidated about 63 percent—equivalent to 420,000 metric tons—of the long positions established the week before.
Furthermore, the report said rubber prices are expected to remain volatile as companies engage in "year-end window dressing and position adjustments."