Tokyo rubber futures tumbled on Wednesday, with the benchmark contract falling to a one-month low, pressured by a firm yen and increased domestic stocks. The benchmark June 2005 contract on the Tokyo Commodity Exchange (TOCOM) settled down 3.8 yen per kg at 123.3 yen, after moving between 122.8 a low last seen on December 8 and 126.8 yen. Other months fell by 3.0 to 4.3 yen on Wednesday.
"It doesn't look like the yen will weaken much for the time being, and this view led to moves to liquidate," a Tokyo analyst said.
Momentum to sell increased after the benchmark contract breached this year's low of 125.8 yen set on January 5, he said. Near-term resistance was pegged at 122 yen.
In the currency market, the dollar held near a one-week low against the yen ahead of US trade data that could swing the market's focus back to the problem of the US' huge deficit.
The dollar was at 103.41/44 yen, up slightly from late US levels of 103.30/33 in late US trade but not far off the one-week low of 103.11 yen.
The Rubber Trade Association of Japan said on Tuesday that crude rubber stocks at private Japanese warehouses amounted to 17,846 tonnes as of December 28, up about 6.2 percent from December 20 when the previous data was taken.
In Thailand, the world's largest producer and exporter of natural rubber, physical rubber prices are expected to fall over the next few days as supplies increase in good weather, Asian traders said on Wednesday.
Japanese traders said the news, though not supportive for TOCOM rubber, has largely been woven into the market.
The volume of TOCOM rubber traded on Wednesday was an estimated 13,574 lots, double on Tuesday's 6,031 lots.
Open interest stood at 38,041 lots as of the end of Tuesday, versus 37,125 lots last on Friday. TOCOM was closed on Monday due to a public holiday.