Tokyo rubber futures dropped to their lowest in more than a week on Monday as worries about falling demand spurred selling, but erratic weather in Southeast Asia could offer support in coming days. The new benchmark rubber contract on Tokyo Commodity Exchange, September 2011, debuted on Monday and opened at 436 yen a kg before falling as low as 401.8 yen a kg, its weakest since March 18.
The contract settled at 409.3 yen a kg after it failed to rise above last week's high around 446.9 yen despite a weaker yen. "In addition, demand from the Japanese auto sector is expected to fall as their operations are suspended due to the quake," said Hiroyuki Kikukawa of Nihon Unicom. The most active contract had settled 6.8 yen lower at 429.6 yen a kg on Friday - well below a record around 535 yen struck in February.
The most active rubber contract on Shanghai Rubber Futures, September 2011 ended at 34,150 yuan a tonne, versus Friday's close of 35,555 yuan, tracking losses on TOCOM. In the physical market, Indonesian SIR20 grade was traded late on Friday at $5.12 to $5.13 a kg for April shipment. Thai RSS3 for May delivery was done at $5.66 a kg, down from a lifetime high at $6.40 seen in February.