Tokyo rubber futures lower

Tokyo rubber futures ended 1.2 percent lower on Friday due to profit-taking after recent rises, while the US debt stalemate still weighed on prices, dealers said. The benchmark rubber contract on the Tokyo Commodity Exchange for January 2012 delivery fell 5.0 yen, or 1.2 percent, to settle at 386.5 yen ($4.97) per kg.
The most active rubber contract on the Shanghai futures exchange dropped 90 yuan to settle at 35,450 yuan($5,502) per tonne. "Players took profits ahead of the weekend and some investors also sold contracts to avoid risk as they feared that the US debt crisis could depress demand," one dealer said.
On the physical front, supply was limited as unseasonable rain hit Thailand's southern areas, the country's major rubber region, disrupting tapping and cutting supply, traders said. "I think prices should gain support from the fundamental side as supply is likely to fall for at least a few weeks," said a trader in Thailand's Hat Yai rubber centre.