Tokyo rubber futures dropped 2 percent to a near 1-week low on Friday as easing oil prices encouraged investors to liquidate contracts to avoid risks ahead of the weekend, dealers said. Technical sentiment was weak after pries fell below a major support of 320 yen. However, traders said TOCOM prices should still be supported by seasonal falls in supply in major producing countries.
The benchmark rubber contract on the Tokyo Commodity Exchange for July delivery fell 5.2 yen to settle at 315.1 yen ($4.08) per kg. It fell as much as 2 percent to an intra-day low of 313.9 yen, the lowest since Monday. The most-active rubber futures contract on Shanghai futures exchange for May delivery fell 480 yuan to finish at 28,315 yuan ($4,500) per tonne. "Players sold contracts to stop losses after they saw oil prices fall continuously," one dealer said. TOCOM prices were likely to fall further next week if oil prices continued to fall, dealers said.
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