Tokyo rubber futures at two-week low

Tokyo rubber futures fell to a two-week low on Monday, hurt by weaker oil prices and a perception prices were overbought, but limited supply in producing countries should offer support, dealers said. The benchmark rubber contract on the Tokyo Commodity Exchange for September delivery fell 10.1 yen to settle at 425.0 yen ($5.112) per kg. It fell as much as 4.2 percent to 416.7 yen per kg, the lowest since March 30.
The most-active Shanghai rubber contract for September delivery also ended 335 yuan lower to finish at 34,960 yuan($5,351.677) per tonnes. "There could be a short-term correction as the market was a bit overbought and weaker oil was an additional negative factor. However, prices could still be supported by tight supply in producing countries," one dealer said. Rubber prices will average $4.5 per kg this year as producers try to take advantage of relatively high prices, the Indonesian Rubber Association (Gapkindo) said on Friday, above last year's average.