Rubber Futures Reach Over 9-Year High

2026-05-12 08:32 By Kyrie Dichosa 1 min. read

Rubber futures rose above 220 US cents per kilogram in mid-May, reaching a fresh high since February 2017, driven by supply concerns linked to weather conditions.

The rainy season had now officially begun in Thailand, according to the Thai Meteorological Department, raising risks of damage to large plantation areas and reducing output from the key producer.

Markets are also monitoring stronger El Niño forecasts across other producing countries, expected to be the most severe in a decade.

Although rubber trees are relatively resilient, analysts warn that prolonged dry conditions could still reduce yields.

Meanwhile, higher oil prices continue to provide support amid escalating tensions in the Middle East, as they increase the cost of synthetic rubber production and make natural rubber relatively more attractive.

Limiting gains, however, was weak Chinese vehicle demand, which reduces consumption of rubber used in tire manufacturing.



News Stream
Rubber Futures Reach Over 9-Year High
Rubber futures rose above 220 US cents per kilogram in mid-May, reaching a fresh high since February 2017, driven by supply concerns linked to weather conditions. The rainy season had now officially begun in Thailand, according to the Thai Meteorological Department, raising risks of damage to large plantation areas and reducing output from the key producer. Markets are also monitoring stronger El Niño forecasts across other producing countries, expected to be the most severe in a decade. Although rubber trees are relatively resilient, analysts warn that prolonged dry conditions could still reduce yields. Meanwhile, higher oil prices continue to provide support amid escalating tensions in the Middle East, as they increase the cost of synthetic rubber production and make natural rubber relatively more attractive. Limiting gains, however, was weak Chinese vehicle demand, which reduces consumption of rubber used in tire manufacturing.
2026-05-12
Rubber Futures Rises to 9-Year High
Rubber futures climbed above 220 US cents per kilogram in early May, hitting a fresh high since February 2017, driven by concerns over supply shortages from weather disruptions. Supply tightness fears rose after Thailand’s meteorological agency warned of storms from May 7–12 that may cause damage and flooding in key regions. Market participants are also tracking stronger El Niño forecasts, expected to be the most severe in a decade. While rubber trees are relatively resilient, analysts note prolonged dry conditions could still cut yields. Meanwhile, China has introduced a zero-tariff deal with 33 African nations, including Ivory Coast, but the China Rubber Industry Association said natural rubber is excluded from tax exemptions. Elevated oil prices also added support, as rubber prices are closely tied to crude oil. Higher oil prices increase production costs for synthetic rubber, making natural rubber more attractive.
2026-05-07
Rubber Futures Climb to Fresh 2017 Highs
Rubber futures climbed toward 218 US cents per kilogram in early May, reaching a fresh high since February 2017, partly driven by elevated oil prices amid ongoing Middle East conflict. Natural rubber prices are closely linked to crude oil, as higher oil prices raise the cost of synthetic rubber production, making natural rubber relatively more attractive. On the supply front, according to CITIC Futures, the post–May Day period in China could mark the start of large-scale latex tapping in Vietnam and Thailand, pointing to a rise in global rubber supply. This outlook reinforced the improving weather conditions in China, where increased rainfall in Yunnan has eased earlier concerns over tight supply caused by heat and drought.
2026-05-04