Tokyo rubber futures fell to a one-week low on Thursday due to weaker oil prices and a stronger Japanese yen, but prices were still supported by limited supply in producing countries, dealers said. The benchmark rubber contract on the Tokyo Commodity Exchange fell 6.4 yen to settle at 381.9 yen ($4.720)per kg. It fell as low as 376.4 yen, the lowest since May 25.
The most active Shanghai rubber contract for September delivery fell 135 yuan to finish at 32,450 yuan ($5,008.658)per tonne. "There were so many negative factors today that dragged TOCOM prices down, the oil prices and the firmer yen, but I think it's a short-term situation," one dealer said. Brent and US oil declined for a second day on Thursday on a surprise gain in US crude stocks, weak economic data in the world's top crude importer and a possible output increase by Opec when the group meets next week.
The dollar stuck near a one-month low against a basket of currencies after more weak US data stoked jitters that the US economy's soft patch may become protracted. A firmer yen makes dollar-based rubber cheaper and usually encourages players to sell rubber contracts in a bid to stop losses. However, dealers said TOCOM rubber was still supported by low supply from the big producing countries, which helped the benchmark finish above 380 yen, a major support level.
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