Key Tokyo rubber futures fell 3.3 percent on Wednesday to their lowest since August 2010 as economic uncertainty and continuing worries about flooding in Thailand weighed, while the yen's advance and high rubber inventories also eroded investor confidence. The key Tokyo Commodity Exchange rubber contract for April delivery dropped 9.2 yen to settle at 272.5 yen.
The most active Shanghai rubber contract for January delivery fell 1.5 percent to close at 25,660 yuan per tonne. Volume increased to 1.88 million lots from 1.72 million lots on Tuesday. "The yen's strength and a fall in Chinese share prices after the announcement of China's consumer prices hurt market sentiment, while investors were worried about the demand outlook" said Kazuhiko Saito, chief commodities analyst at Fujitomi, a trading house.
The front-month contract came under pressure after an industry body said that inventories of raw rubber in Japan climbed to their highest level in more than four years at 13,574 tonnes as of October 20, up 2.9 percent from 10 days earlier, Saito said. Natural rubber prices in India dropped below 20,000 rupees ($401.6) per 100 kg on Wednesday, for the first time since March 15, as softness in the world market and a rise in local supplies hammered the market, dealers said.
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