Tokyo rubber futures drop

Benchmark Tokyo rubber futures hit a near two-week low on Wednesday after Chinese trade data raised the prospect of weaker demand for commodities in the second half of the year. The benchmark rubber contract on the Tokyo Commodity Exchange (TOCOM) for December delivery fell 6.8 yen, or 2.8 percent, to settle at 234.7 yen ($2.32) per kg. The contract fell more than 4 percent to 231.5 yen, the lowest since June 28. It has dropped more than 20 percent this year. 

The most-active rubber contract on the Shanghai futures exchange for January delivery fell 95 yuan to finish at 17,280 yuan ($2,800) per tonne. "Shanghai rubber markets fell, which exacerbated TOCOM losses," said a Tokyo-based industry source who declined to be identified. The front-month rubber contract on Singapore's SICOM exchange for August delivery last traded at 216.00 US cents per kg, down 1.2 cent.