Benchmark Tokyo rubber futures snapped three straight sessions of gains to close lower on Wednesday after hitting a more than one-week high earlier in the session, as the market came under pressure from weaker Shanghai futures. Tokyo Commodity Exchange (TOCOM) futures, which set the tone for rubber prices in Southeast Asia, have been weighed down by rising rubber stockpiles in Japan and China, as well as worries over slack demand.
The Tokyo Commodity Exchange rubber contract for September delivery finished 1.6 yen lower at 181.9 yen ($1.70) per kg after touching a high of 184.2 yen, the highest since April 2. The most-active rubber contract on the Shanghai futures exchange for September delivery fell 75 yuan to finish at 11,480 yuan ($1,828) per tonne. The front-month rubber contract on Singapore's SICOM exchange for May delivery last traded at 136.9 US cents per kg, down 0.8 cent. "Ample supplies are the leading cause for concern in the rubber market," said a Japanese trading source.