Tokyo rubber drops to 10-month low

Benchmark Tokyo rubber futures dropped to their 10-month low on Tuesday as speculators stepped up selling on increasing worries about demand from the world's top consumer China, while slumping Chinese shares and weaker oil prices reinforced negative sentiment. The Tokyo Commodity Exchange rubber contract for January delivery finished 3.3 yen, or 1.7 percent, lower at 186.9 yen ($1.50) per kg, after hitting a low of 185.9 yen, the lowest since October 17, 2014, earlier in the session.
Chinese stocks plunged as the yuan weakened against the dollar, reigniting fears that Beijing may be intent on a deeper devaluation of the currency despite the central bank's comments that it sees no reason for a further slide. The most-active rubber contract on the Shanghai Futures Exchange for January delivery fell 190 yuan to finish at 12,025 yuan ($1,881.02) per tonne.