Tokyo rubber futures dropped 1 percent in thin trade on Wednesday, tracking weaker oil prices, but tight supply in producing countries still gave some support, dealers said. The benchmark rubber contract on the Tokyo Commodity Exchange for September delivery fell 3.0 yen, or 1 percent to settle at 336.8 yen ($4.05) per kg.
The most-active Shanghai rubber contract for May delivery fell 320 yuan to finish at 28,230 yuan ($4,500) per tonne. The front-month April rubber contract on Singapore's SICOM exchange was last traded at 379.50 US cents per kg, up 1.1 cents.
"Easing oil prices weighed on rubber prices and the volume was quite thin so there was no major buying force to push rubber futures higher," one dealer said. Thailand, the world's biggest rubber producer and exporter, is in the dry season. Farmers in major rubber areas have completely stopped tapping as rubber trees stopped producing latex, resulting in a sharp falling in supply.