Rubber Futures at Over 1-Week Low

Rubber futures have eased in recent days to around 237 US cents per kilogram, their lowest level in more than a week, dampened by softer tyre demand from top buyer China. Analysts at Chaos Ternary Futures Research Institute said average natural rubber purchases by tyre manufacturers declined last week amid rising raw material costs, partly due to higher oil prices. Further declines are expected ahead as some companies plan holiday closures ahead of National Day and Mid-Autumn Festival. Geopolitical tensions in the Middle East and expectations of tighter monetary policy from major central banks also clouded the demand outlook. However, elevated oil prices and concerns over tight supply provided some support as Southeast Asia’s peak tapping season draws to an end. Expectations of a strengthening El Niño in Q4 have added to supply risks, as hotter and drier conditions in key producing countries such as Thailand and Indonesia could reduce latex yields.