Ample supplies push rubber futures down

Ample supplies push rubber futures down

SINGAPORE (Reuter): Rubber futures slipped at the close yesterday as ample supplies and high stocks in Japan depressed sentiment in the market, dealers said.

"The market is falling as if it had no brakes. The influx of more supplies from Indonesia and high stocks in Japan is really pushing the market down," a local rubber trader said.

Reports of better weather in Malaysia and Thailand, which may also boost supplies, weighed further on the market's already weak sentiment, traders said.

"There's just too much raw material present. It's one reason consumers are not buying so aggressively," another dealer said.

Traders predict that prices in Japan may test 130 yen soon, possibly extending the hold of the bears in the market. Tokyo's benchmark March contract slid 2.5 yen to close at 134.0. Kobe's March contract was steady at 133.7.

At around 0945 GMT, November RSS3 was seen at 123.00-124.00 U.S. cents a kg from 124.75 cents.

November RSS1 was seen at 177.00-179.00 Singapore cents (US$1.25-$1.27) a kg from yesterday's settlement of 180.00 cents. November TSR20 was quoted at 173.00 Singapore cents (US$1.23) a kg against the previous 173.50 cents.