Rubber Futures Climb to 2017 Highs

2026-06-03 09:11 By Kyrie Dichosa 1 min. read

Rubber futures rose above 230 US cents per kilogram in early June, reaching their highest level since January 2017, supported by supply shortages driven by weather disruptions.

The world’s top two rubber-producing countries are expected to see tighter supply due to adverse weather conditions.

In Thailand, the meteorological agency has warned of very heavy isolated rainfall in the south, raising the risk of flash floods between June 2–7, while Indonesia’s weather agency forecasts an early onset of dry conditions and below-normal rainfall in June.

Despite differing weather patterns, both conditions could disrupt rubber tapping and harvesting activities, limiting output and constraining global supply.

At the same time, renewed tensions in the Middle East pushed oil prices higher, adding support.

Natural rubber prices tend to move with crude oil because higher oil prices make synthetic rubber more expensive, increasing demand for natural rubber.



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Rubber Futures Climb to 2017 Highs
Rubber futures rose above 230 US cents per kilogram in early June, reaching their highest level since January 2017, supported by supply shortages driven by weather disruptions. The world’s top two rubber-producing countries are expected to see tighter supply due to adverse weather conditions. In Thailand, the meteorological agency has warned of very heavy isolated rainfall in the south, raising the risk of flash floods between June 2–7, while Indonesia’s weather agency forecasts an early onset of dry conditions and below-normal rainfall in June. Despite differing weather patterns, both conditions could disrupt rubber tapping and harvesting activities, limiting output and constraining global supply. At the same time, renewed tensions in the Middle East pushed oil prices higher, adding support. Natural rubber prices tend to move with crude oil because higher oil prices make synthetic rubber more expensive, increasing demand for natural rubber.
2026-06-03
Rubber Futures Hover Around 2017-Highs
Rubber futures traded above 220 US cents per kilogram, hovering near the highest since February 2017, supported by elevated oil prices amid ongoing Middle East tensions and weather concerns in major producing regions. Natural rubber prices closely track crude oil, as higher oil prices make synthetic rubber more expensive and boost demand for natural rubber. In major Southeast Asian producers, including Thailand, Indonesia and Vietnam, monsoon rains since mid-May have disrupted agricultural activity and constrained output, with elevated temperatures amid climate change also weighing on production. Thailand is also under maximum environmental alert due to an intense “Super El Niño” phenomenon expected to trigger severe drought conditions in the country. Meanwhile, weak tyre demand from the Middle East continues to weigh on rubber consumption, as the region imports large volumes of Chinese-made tyres that rely on rubber as a key input.
2026-05-27
Rubber Futures Trade Sideways
Rubber futures traded around 220 US cents per kilogram in late May, moving sideways after retreating from a nine-year high of 232 US cents earlier this month, as traders continued to monitor supply conditions across key producing regions. Ivory Coast is set to enter its peak harvesting season, which could add to global supply, while heavy rainfall in Thailand has disrupted tapping activity and constrained output, limiting downside pressure. Meanwhile, weak tyre demand from the Middle East continues to weigh on overall rubber consumption, as the region is a major importer of Chinese-manufactured tyres, which are made from rubber. Elsewhere, sentiment around US–Iran talks has pushed oil prices lower, which could ease input cost pressures for synthetic rubber and reduce the relative attractiveness of natural rubber.
2026-05-25