TOCOM dips to 1-week low on oversupply fear

Benchmark Tokyo rubber futures dropped to a one-week low on Thursday, weighed down by growing concern over softening demand in China, the world's top consumer, and a lack of effective steps by top producers to fix oversupply, dealers said.

The Tokyo Commodity Exchange rubber contract for May delivery fell 2.3 yen, or 1.1 percent, to settle at 200 yen ($1.7033) per kg. It earlier fell to as low as 199.3 yen, the lowest since Nov. 18.

"The yen's gain against the U.S. dollar and lower commodities prices prompted selling," a Tokyo-based dealer said.

The dollar edged down against the yen on Thursday after lacklustre U.S. economic data pushed Treasury yields lower and dulled investor appetite for the greenback.

Brent crude fell to a four-year low under $76.30 a barrel on Thursday as it became increasingly unlikely that OPEC would cut output to support prices during a meeting in Austria.

"Investors are disappointed by the fact that top producers could not come up with any effective measures to improve oversupply situation while they are also worried about slack demand in China," the dealer said.

Top Asian rubber producers agreed last week to "manage" exports to international markets to curb excess supply, although analysts said the step would have little impact on battered prices without a robust pickup in demand.

"Unless top producers start cutting production, the rubber market will remain under selling pressure," the dealer added.

The most-active rubber contract on the Shanghai futures exchange for May delivery rose 120 yuan to finish at 12,800 yuan ($2,085) per tonne.

The front-month rubber contract on Singapore's SICOM exchange for December delivery last traded at 154.9 U.S. cents per kg, down 1.0 cent.