Tokyo rubber hits 10-week low

Benchmark Tokyo rubber futures touched a 10-week low on Thursday, in line with a decline in Shanghai futures that traded near a two-year low hit a day earlier amid concerns about oversupply. The Tokyo Commodity Exchange rubber contract for November delivery
finished 1.8 yen lower at 179.5 yen ($1.63) per kg after touching 178.3 yen earlier, its lowest since April 6. The most-active rubber contract on the Shanghai futures exchange for September delivery fell 165 yuan to finish at 10,810 yuan ($1,692) per tonne.
The front-month rubber contract on Singapore's SICOM exchange for July delivery last traded at 136.1 US cents per kg, down 2.1 cents. Asian rubber prices remained weak as Shanghai futures traded near Wednesday's intraday low of 10,600 yuan, their lowest since July 2016, reflecting higher stockpiles in Japan and China and a projected output growth by major producers in Southeast Asia. "In the short term, the supplies outweigh demand," said a trader.