Key Tokyo rubber futures eased on Friday as sentiment remained bearish on worries that unrest in the Middle East could hurt the global economy, but losses were limited due to tight supply. The key Tokyo Commodity Exchange rubber contract for August delivery fell 1.5 percent or 7.3 yen to settle at 468.4 yen per kg, but on the week gained 2 percent. Last week, the market fell 13 percent.
At the current level, the key contract is about 13 percent below the record high hit last month of 535.7 yen. Traders said they expected rubber to find a near-term bottom due to concerns over supply and firm oil prices, but the market was not expected to reach a fresh record as long as Shanghai rubber futures lacked clear momentum to the upside. The most active Shanghai rubber contract for May delivery fell 430 yuan to close at 38,030 yuan ($5,787) per tonne on Friday.
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