Tokyo rubber futures dropped 1.6 percent to a near 2-week low on Wednesday, tracking falls in share prices as China's economic slowdown dampened investor sentiment, but prices were still supported by limited supply on the physical front, dealers said.
The benchmark rubber contract on the Tokyo Commodity Exchange for August delivery fell 1.4 yen to settle at 332.2 yen ($3.97) per kg. It fell as much as 1.6 percent to 328.2 yen per kg, the lowest since March 9.
The most-active Shanghai rubber contract for May delivery was up 380 yuan to finish at 28,445 yuan ($4,500) per tonne. The front-month rubber contract on Singapore's SICOM exchange was last traded at 373.50 US cents per kg, down 0.9 cent. "Sentiment was not so good on share markets as news on China's economic slowdown weighed on the market and that dampened investor appetite on TOCOM as well," one dealer said. TOCOM prices were unlikely to fall sharply after prices found a major support at 330 yen level, while falling supply on in physical market should still support, dealers said.
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