Benchmark Tokyo rubber futures inched down in lacklustre trade on Friday, ending the week with a 6 percent drop, as investors worried about oversupply in Asia. "With no fresh news, investors were just making adjustments on their position ahead of the weekend and the expiry of the June contract next Monday," said Toshitaka Tazawa, analyst at Fujitomi Co.
Oil prices also edged up on Friday, recovering some of their steep losses this week, although crude remained on course for its worst first-half decline in almost two decades as production cuts have failed to sufficiently reduce oversupply. The Tokyo Commodity Exchange (TOCOM) rubber contract for November delivery finished 0.2 yen lower at 189.3 yen ($1.70) per kg. For the week, it fell 5.8 percent.
"I think the TOCOM will stay in a 180-190 yen or 170-200 yen range unless there are some fundamental surprises such as cyclone or fire in producing countries," Tazawa said. The most-active rubber contract on the Shanghai Futures Exchange for September delivery fell 50 yuan to finish at 12,670 yuan ($1,853) per tonne.