Rubber Futures Cool as Supply Outlook Improves

Rubber futures eased below 260 US cents per kilogram, pulling back slightly while staying close to their highest levels since 2013. Easing rainfall in top producer Thailand ahead of the fourth-quarter peak production season raised expectations of improved supply. However, weather-related risks persisted, with the World Meteorological Organization saying El Niño was nearly certain to continue through February 2027, potentially disrupting production. On the demand side, persistently weak consumption in China, the world’s largest rubber consumer, weighed on prices. Meanwhile, higher oil prices helped limit the decline by increasing the relative cost of synthetic rubber, which is derived from petroleum.