SINGAPORE: Japanese rubber futures snapped an eight-session winning run on Wednesday, weighed down by easing fears about supply from top producer Thailand, and posted their first annual fall in three years.
The Osaka Exchange (OSE) rubber contract for June delivery fell 3.9 yen, or 1.13 percent, to 341.6 yen (USD2.18) per kg.
The contract declined 8.79 percent this year, reaching a high of 394 yen on January 27 and a low of 294 yen on June 2.
The rubber contract on the Shanghai Futures Exchange (SHFE) for May delivery fell 75 yuan, or 0.48 percent, to 15,605 yuan (USD2,232.95) per metric ton.
The most-active February butadiene rubber contract on the SHFE fell 30 yuan, or 0.26 percent, to 11,520 yuan (USD1,648.42) per ton.
Thailand’s meteorological agency said that monsoon rains would soon weaken in the south of Thailand, where rubber production is concentrated, from December 29 to January 4.An increase in rubber production will exert downward pressure on prices.
Demand for natural rubber is likely to strengthen in the first half of 2026, said several brokers on financial information site Tonghuaxun.
On the other hand, rubber supply growth is set to slow as plantations face several constraints, including weather-related disruptions and tree aging.
Most of Thailand’s rubber trees are aging out of their optimal production window, and second-largest producer Indonesia is pivoting to more high-value crops, said Chinese financial services company AVIC futures.
However, actual fluctuations in short- to medium-term will revolve closely around weather forecasts in producing areas, downstream demand and inventory changes, the company said.
The front-month rubber contract on Singapore Exchange’s SICOM platform for February delivery last traded at 180 US cents per kg, up 0.2 percent, as of 0700 GMT.