Japanese rubber futures ease as firmer yen outweighs supply worries

SHANGHAI: Japanese rubber futures fell on Wednesday, as pressure from a stronger yen outweighed signs of tightening Indonesian supply and a rally in oil prices.

The Osaka Exchange (OSE) rubber contract for February delivery was down 0.8 yen, or 0.18percent, at 437.8 yen (USD2.86) per kg. The rubber contract on the Shanghai Futures Exchange (SHFE) for January delivery rose 305 yuan, or 1.57percent, to 19,770 yuan (USD2,947.58) per metric ton.

The most active October butadiene rubber contract on the SHFE gained 170 yuan, or 1.09percent, to 15,810 yuan per metric ton. The Japanese yen steadied near its strongest level since February on Wednesday, keeping the dollar on the defensive as traders grappled with oil prices pushing towards USD100 per barrel in the face of a widening war in the Middle East. A stronger currency makes yen-denominated assets less affordable to overseas buyers.

Indonesia’s exports of natural rubber fell 21percent year-on-year in the first seven months of 2026, according to rubber information provider Qinrex.

The decline reinforces concerns over supply tightness in one of the top rubber producers and adds to the potential impact of El Niño in the coming months, a Singapore-based trader said. Prices are further supported by expectations of tighter Indonesian supply due to ongoing haze and forest fires, the trader added.

Brent crude prices were trading close to USD100 a barrel on Wednesday for the first time since July, as escalating attacks across the Middle East fuelled concerns over disruptions to oil supplies from the region.

Natural rubber often takes direction from oil prices as it competes for market share with synthetic rubber, which is made from crude oil. The front-month rubber contract on Singapore Exchange’s SICOM platform for November delivery last traded at 249 US cents per kg, up 0.5percent as of 0700 GMT, hitting a fresh high this year.