Stretching and Flexing the Basics of Global Rubber Trade

The emergence of rubber as one of the essential commodities can be traced back in the 11th century. The South American inhabitants utilized rubber and turned it into balls used for various sporting games.
In the middle of the 17th century, French started experimenting on other uses of rubber, realizing that its substance and potential can be transformed in many beneficial products. The experiment was a success and rubber was soon adopted by other nations.

Today, rubber, which is not just a distinct material produced synthetically but also an appealing commodity, is now also used in global trading.

Points and Flexes

Rubber, known for its elasticity, has become one of the most in demand commodities in the world. The material has proven its wide range of practical applications
The 90% of natural rubber production is dedicated to exports purposes. With this huge percentage, the commodity creates a large market by producing higher demands from investors, which makes it an ideal asset for trading.
The rubber trade revolves around the automotive industry where products out of rubber such as the tires, auto tubes and other automobile parts are created. It is most common in Thailand, the top producer of the commodity where an estimated 2.3 million tons are produced every year.

Being one of the world’s prime commodities, in line with gold and oil, rubber trading has reached places in the world. With its growth, rubber commodity is now seen in number of exchanges across the world.
It is listed in Asian markets including the Tokyo Commodity exchange and the Osaka Mercantile Exchange in Japan and the National Commodity and Derivatives Exchange and Multi Commodity exchange in India.
Prices of rubber commodity futures are also affected by a number of factors, with the demand for automobile tires being on top of the list. National policies and trade restrictions can also push rubber futures higher or lower.