Tokyo rubber hits five-month low on supply glut worries

Benchmark Tokyo rubber futures fell to a five-month low on Wednesday, extending losses for a fourth straight session and dipping below the key 200-yen level, hurt by oversupply concerns and a sharp drop in Shanghai futures. "The market is under pressure due to weakening Shanghai prices as well as concerns over a supply glut as Songkran holiday in Thailand is over and output is expected to rise soon," said Hiroyuki Kikukawa, general manager of research at Nissan Securities.
Rubber is tapped year round, but latex output drops during the dry wintering season, when trees shed leaves. Wintering in Thailand, the world's biggest rubber producer, lasts from February to around May.