SHANGHAI: Japanese rubber futures eased on Monday as technical signals pointed to a possible correction after the contract’s rally to multi-year highs, while Japanese equities inched lower as rising Bank of Japan rate hike expectations also weighed on sentiment.
The Osaka Exchange (OSE) rubber contract for February delivery was down 1.1 yen, or 0.25percent, at 441.5 yen (USD2.76) per kg. The rubber contract on the Shanghai Futures Exchange (SHFE) for January delivery rose 155 yuan, or 0.82percent, to 18,965 yuan (USD2,822.17) per metric ton.
The most active October butadiene rubber contract on the SHFE gained 610 yuan, or 4.24percent, to 15,000 yuan per metric ton. The OSE contract is testing multi-year highs with the bullish trend likely intact, though prices are in overbought territory and point to a possible near-term correction before further gains, Japan Exchange Group said in a report on Monday.
Japan’s Nikkei share benchmarkedged lower on Monday as rising expectations for central bank rate hikes weighed on risk sentiment. Rubber inventories in warehouses monitored by the Shanghai Futures Exchange rose 0.5percent week-on-week, the exchange said on Friday. The global natural rubber market remains in deficit in 2026.
The key question for the second half is whether that tightens actual supply, given that purchasing has remained largely hand-to-mouth without a broad restocking cycle so far, the International Rubber Study Group said in a note.
The front-month rubber contract on Singapore Exchange’s SICOM platform for November delivery last traded at 235.9 US cents per kg, down 0.1percent as of 0706 GMT.
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