Rubber futures fell as expectations of abundant raw material supply and weak demand weighed on prices.

⑴ Japanese rubber futures softened on Wednesday, mainly due to expectations of looser Thai raw material supply as the peak production season approaches, as well as persistently weak tire demand in major consumer regions, while higher oil prices limited declines. ⑵ The Osaka Exchange March delivery rubber contract fell by about 7.1 yen, or approximately 1.5%, to around 453.4 yen per kilogram. ⑶ The Shanghai Futures Exchange January delivery rubber contract dropped by about 450 yuan, or around 2.2%, to approximately 20,065 yuan per ton. ⑷ The most actively traded butadiene rubber contract for November delivery on the Shanghai Futures Exchange fell by about 300 yuan, or around 1.9%, to approximately 15,905 yuan per ton. ⑸ According to a report by an institution, heavy rains in Thailand have eased since late October, and the region is entering the fourth quarter peak production season, so supply is expected to increase quarter-on-quarter. ⑹ The institution also stated that tire factories have been restocking slowly after the holidays, and with persistently high raw material costs, demand remains suppressed. ⑺ Another institution expects that if there are no further weather disruptions, Thai raw material prices are likely to decline in October as the region enters the seasonal peak in production. ⑻ Oil prices rose on Wednesday after two ships were attacked in the Strait of Hormuz, with Iranian officials saying new tactics are being deployed against ships. Natural rubber usually tracks oil price trends because it competes for market share with synthetic rubber made from crude oil. ⑼ The latest January delivery rubber contract on the Singapore Exchange SICOM platform was quoted at approximately 254.5 US cents per kilogram, down about 0.4%. ⑩ Going forward, attention should be paid to the combined impact of Thai weather and raw material prices, tire demand in major consumer regions, as well as oil prices and the competition between synthetic rubber and natural rubber on rubber prices.