Tokyo rubber up, Shanghai falls

Tokyo rubber futures ended higher on Tuesday, supported by firmer oil prices, which helped overshadow worries over Greece's debt problems, but gains were still limited by rising supply in major producing countries, dealers said. The benchmark rubber contract on the Tokyo Commodity Exchange for December delivery rose 2.3 yen to settle at 347.3 yen ($4.293) per kg.
The most active Shanghai rubber contract for September delivery fell 25 yuan to finish at 30,700 yuan ($4,735) per tonne. "Firmer oil helped support TOCOM prices, but they lacked momentum to rise further as players knew that supply was rising," one dealer said. Traders said TOCOM could ease further on Wednesday, weighed down by rising supply in Thailand, the world's biggest rubber producer. The heavy rain that hit Thailand for weeks has now stopped, allowing farmers to tap more latex, so supply is likely to rise gradually.