Tokyo and Shanghai rubber futures continued their further falls from an earlier week in the wake of weak market sentiment and a fall in Shanghai Composite Index even though the Dow Jones Industrial Average and Japan’s Nikkei 225 Index rebounded from an earlier week, and the Japanese yen weakened against the dollar.
The continued falls on rubber futures in Asia depressed physical rubber prices in the region but were not so much as on rubber futures in the region because of persistent tight natural rubber (NR) supply in NR producing countries, especially in Southern Thailand.
It is expected that a technical rebound on rubber futures in the region will occur in the coming weeks after an oversold situation on rubber futures in the region is over.
Source: IRCo
