Tokyo rubber futures slip

Key TOCOM rubber futures ended slightly lower after falling as much as 2.5 percent on Thursday, reversing the previous session's sharp gains, as investors avoided risk ahead of a closely watched Spanish bond auction. The key Tokyo Commodity Exchange rubber contract for September delivery settled down 2.9 yen at 309 yen per kg. The benchmark contract fell as low as 304.2 yen earlier.
"Investors tended to stay on the sidelines. There aren't many encouraging factors as supply is gradually increasing, while inventories remain at a high level," said a trader. Crude rubber inventories at Japanese ports dipped in early April, but stayed near a five-year high, the latest data from the Rubber Trade Association of Japan showed. The most active Shanghai rubber contract for September delivery rose 40 yuan to close at 27,245 yuan per tonne. The front-month May rubber contract on the SICOM in Singapore was last traded at 364 US cents per kg, down 0.9 cents.