Key Tokyo rubber futures fell 1.7 percent on Friday to a nearly two-week low as investors grew cautious about recent rapid price rises, with the market's focus shifting to a possible supply increase from top producer Thailand. The key Tokyo Commodity Exchange rubber contract for September delivery settled down 7.0 yen at 434.7 yen per kg, after touching the day's low at 433.6 yen.
The contract fell more than 6 percent over the week. The market is concentrating on the situation in top producer Thailand next week, where financial markets will reopen on Monday after a three-day holiday. "There is a possibility that the current market tightness could gradually ease with the end of the dry season, and that could weigh on prices," a trader said. The most active Shanghai rubber contract for September delivery fell 760 yuan to close at 35,670 yuan ($5,461) per tonne on Friday. Volume picked up to 785,688 lots, up from Thursday's 756,046 lots.
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