Japan's Rubber Prices Plummet as Stronger Yen and El Niño Loom

Japanese rubber futures plummeted for a sixth consecutive session on Friday, weighed down by a stronger yen. The Osaka Exchange (OSE) contract for February delivery declined 0.16% to 428 yen ($2.74) per kilogram.

The week's decline was the steepest since June 26, with the contract falling 3.3%. The Shanghai Futures Exchange (SHFE) contract for January delivery also dropped, down 0.11% to 18,700 yuan ($2,786.30) per metric ton.

The yen's resurgence against the US dollar, despite a two-day rally, made yen-denominated assets less appealing to overseas investors. The El Niño weather phenomenon is expected to intensify in 2027, posing supply risks for rubber-producing regions.