The benchmark Tokyo rubber futures contract slipped on Thursday, tracking easing oil prices, though it was still supported by concerns over falling supply. The benchmark rubber contract for August delivery fell 0.3 yen to settle at 331.9 yen ($3.97) per kg, after staying in a tight 329-335 yen range.
Other contracts inched 0.4-0.6 yen higher, while the nearby April contract dropped 3.5 yen to finish at 310.5 yen per kg. The most-active Shanghai rubber contract for May delivery declined 335 yuan to settle at 28,110 yuan ($4,400) per tonne. The front-month April rubber contract on Singapore's SICOM exchange was last traded at 373.20 US cents per kg, down 2.0 cents.
"There's no positive factor for TOCOM today as oil prices eased and trading volume was thin, so TOCOM lacked the force to rise higher," said one dealer. Traders said, however, that they did not expect TOCOM prices to fall sharply as they will be supported by tight supply in Thailand, the world's biggest producer and exporter.