Key Tokyo rubber futures eased on Monday after gaining 3 percent last week, pulled lower by a drop in oil prices and weaker technical indicators. The benchmark TOCOM rubber futures for October delivery settled down 1.1 yen or 0.3 percent at 370.4 yen per kg. The contract's 3 percent climb last week was the first weekly gain for a benchmark contract since mid-April.
The October contract settled below the 200-day moving average, which stood at 379.2 yen on Monday, indicating a bearish technical outlook, traders said. The most active Shanghai rubber futures contract for September delivery closed down 305 yuan or 1 percent at 31,205 yuan ($4,802.137) per tonne on Monday against Friday's close of 31,510 yuan. Volume rose to 1.2 million lots from Friday's 1.16 million lots. Japan's crude rubber inventories rose 8.5 percent in the 10 days to April 30, Rubber Trade Association of Japan data showed on Monday, reflecting weaker demand from automakers, whose production was hit by the March 11 earthquake and tsunami.
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