Rubber Futures Rise

Rubber futures rose to around 257 US cents per kilogram, not far from their highest level since 2013, reached in mid-October, driven by persistent supply concerns. Heavy rainfall and flash-flood warnings in southern Thailand threatened to disrupt tapping activity through October 28. El Niño-related weather also continued to affect cup-lump quality and production, while raw-material shortages in Indonesia added to supply constraints. Meanwhile, improving rainfall in northern Thailand has allowed farmers to resume tapping, with output gradually recovering. However, gains were capped by lower crude oil prices, which made petroleum-based synthetic rubber more competitive and potentially diverted demand from natural rubber.