Tokyo rubber futures edged lower on Friday as technical selling blocked the topside after they failed to break through psychological resistance, but concerns over supply and firmer oil prices provided some support. As of 0115 GMT, the benchmark Tokyo Commodity Exchange rubber contract for July delivery was down 0.7 yen, or 0.2 percent, at 307.3 yen a kg from Thursday's close.
The key July contract drifted down after reaching a session high of 309.5 yen. Traders were keen to square their positions ahead of the weekend after TOCOM rubber struggled to sustain gains above 310 yen this week.
The key contract reached 310.8 on Tuesday and 310.0 on Thursday. But traders were careful about selling rubber heavily due to firmness in energy prices and wariness over supply. In Thailand, the biggest rubber producer, farmers have stopped tapping to allow trees to rejuvenate during the dry winter season, when trees shed their leaves and stop producing latex.
In No 2 producer Indonesia, production was cut due to rains. Supply in Malaysia, the third-biggest producer, also dropped because farmers gradually stopped tapping as rubber trees produce less latex due to the dry weather. US crude oil futures edged down on Friday after having surged more than 2 percent to above $95 a barrel the previous day, as concerns over supply disruptions from Venezuela and Mexico began to ease.
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