Tokyo rubber futures eased on Friday as a strong yen prompted technical selling ahead of the weekend, but wariness over a physical supply shortage continued to lend support, especially to prompt contracts.
The benchmark November rubber contract closed down 0.1 yen per kg at 154.0 yen from Thursday's settlement, but off from a session low of 152.4 yen. The market stayed in a backwardation, as there were few physical supplies, with unusually hot weather in Thailand the world's largest producer possibility restraining availability.
"Tight supply conditions kept the spot price supported, but the market is not too pessimistic, which is keeping the longer end of the market under pressure," a trader at a Japanese brokerage said.
The spot June contract closed down 0.3 yen at 157.4 yen, but maintained upturned gained this week.
"The yen's recent upturned has been putting pressure on distant contracts," the trader said.
Turnover in TOCOM rubber was estimated at 6,641 lots from 6,077 lots on Thursday.
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