Tokyo rubber futures settled lower on Friday on expectations supplies will start to rise as the end of the dry season in rubber producing countries nears.
The benchmark September 2004 rubber contract on the Tokyo Commodity Exchange (TOCOM) closed down 2.8 yen per kg at the day's low of 151.1 yen, slipping from the high of 154.3.
Other months fell 2.1 to 2.5 yen, except for the spot April contract, which expired unchanged at 141.1 yen.
"Selling interest was strong due to expectations of a seasonal increase in natural rubber output," one broker said.
Rubber output decreases during the dry, or "wintering", season, in Southeast Asia as rubber trees yield less latex. Brokers said the dry season is expected to end in May.
A lack of Chinese buying recently was another reason for selling of TOCOM rubber futures, brokers said.
The benchmark September contract has shed 13.8 yen or 8.4 percent since it marked a life high of 164.9 yen last week.
The benchmark contract is expected to test the key 150 yen level next week, another broker said. The breach of the level could accelerate fund long liquidation, he added.
TOCOM said on Friday those 344 lots or 3,440 tonnes of rubber was delivered at the spot contract expiry. There was a talk that part of the delivered rubber would be shipped to China.
Turnover in TOCOM rubber was estimated at 10,546 lots on Friday, up from 9,299 lots on Thursday.
Open interest stood at 45,311 lots at the end of Thursday trade, down from 47,261 lots on Wednesday.
The dollar was trading at 109.21/27 yen, compared to the late US level of around 109.45.
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