Tokyo, Shanghai rubber futures drop on Aug.13

Tokyo Commodity Exchange (TOCOM) and Shanghai futures exchange eased on Tuesday due to ample stockpiles. The benchmark TOCOM rubber contract for January delivery finished 0.5% lower at 165.7 yen ($1.57) per kg on Tuesday. The most-active rubber contract on the Shanghai futures exchange for September delivery dropped 1.4% to 11,425 yuan ($1,617.08) per tonne. China's technically specified rubber (TSR) 20 futures contract was last down 0.1% at 9,865 yuan per tonne.

"Today as the second trading day for the TSR 20 market is a bit quiet, trading volume is not as much. After sharp movements yesterday, investors are more cautious about the market today," said a Singapore-based trader. "Overall, there is still large supplies in the market so we are seeing some pressure on prices."

TOCOM's technically specified rubber (TSR) 20 futures contract for February delivery closed down 0.1% at 142.9 yen per kg. The front-month rubber contract on Singapore's SICOM exchange for September delivery last traded down 0.3% at 130.8 US cents per kg.