Benchmark Tokyo rubber futures snapped five sessions of declines to edge higher on Friday as investors unwound short positions ahead of the weekend, but still posted their biggest weekly drop in three months. The Tokyo Commodity Exchange (TOCOM) rubber contract for February delivery finished up 0.3 yen, or 0.1 percent, at 210.5 yen ($1.9) per kg.
For the week, it marked a decline of 4.8 percent, its biggest slide since mid-June. "The TOCOM inched higher due to position adjustments," a Tokyo-based dealer said. The most-active rubber contract on the Shanghai futures exchange for January delivery fell 230 yuan to finish at 14,565 yuan ($2,210) per tonne.
Rubber inventories in warehouses monitored by the Shanghai Futures Exchange rose 1.2 percent from last Friday, the exchange said on Friday. The front-month rubber contract on Singapore's SICOM exchange for October delivery last traded at 153.4 US cents per kg, up 2.2 cents. "Investors in Shanghai have been unwinding long positions after seeing the recent peaks in early September as concerns over supply tightness in January has receded," the dealer said, adding that disappointing result from last week's producers' meeting was also behind selling.
Unlike last year, the International Tripartite Rubber Council, representing the world's top natural rubber producers, did not take a decision on Friday regarding export curbs. Thailand's agriculture minister said the council is closely monitoring rubber price trends.