Asian physical rubber prices were narrowly mixed on Monday as weakness in Japanese rubber futures weighed on prices, while supply concerns due to the dry season in Thailand lent some support. "Physical prices are supported because of the wintering season and a shortage of supplies, so many people are very cautious," said a Thai trader in the rubber centre of Hat Yai.
Physical rubber supplies were down in top producers Thailand and Malaysia due to seasonal factors, while supplies rose slightly in Indonesia as rain subsided in some areas. Tokyo rubber fell nearly 2 percent on Monday as a sharp gain in the yen prompted heavy selling, but strength in oil prices and concerns over supplies provided support.
The benchmark Tokyo Commodity Exchange rubber contract for August delivery fell as far as 300.8 yen, per kg before finishing the session at 304.3 yen, down 2 yen or 0.7 percent from Friday's close 306.3 yen.
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