Tokyo rubber futures edged lower on Friday, extending losses into a third straight session as a lack of activity in the physical market weighed on prices, but limited supply and firm oil supported sentiment. The benchmark rubber contract on the Tokyo Commodity Exchange for August delivery slipped 0.5 yen to settle at 332.6 yen ($3.99) per kg.
"Demand is so sluggish. Buyers have disappeared. We've sold some rubber but only to trading houses in Singapore," said a dealer in Indonesia, adding that demand from top consumer China remains weak. The most active Shanghai rubber contract for May delivery was down 80 yuan to finish at 28,490 yuan per tonne. The front-month April contract on Singapore's SICOM exchange was last traded at 376.0 US cents per kg, down 1.8 cents. "Players just liquidated the contract, taking profit to avoid risks ahead of the weekend, but overall TOCOM prices were still supported," one dealer said.
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