Tokyo rubber futures fell July 25 after six straight sessions of gains as weaker oil prices and the yen’s gain against the U.S. dollar prompted profit-taking, according to a report from Reuters.
After closing at a seven-week high the day before, a rubber contract for December delivery dropped 0.5% to settle at 255.8 yen per kg.
"A drop in oil prices and rebound in the yen in the afternoon weakened market sentiment," said Hiroyuki Kikukawa, general manager at Nihon Unicom Inc.
Brent crude slipped below $107 a barrel on July 25 and the yen moved higher to 99.75 yen against the U.S. dollar, Reuters reported.
"Investors in the rubber market are reluctant to keep buying as they worry about the slowing Chinese economy and excess rubber supply," Kikukawa said.
The most active rubber contract on the Shanghai exchange for January delivery rose $30.96. The front-month rubber contract on Singapore’s SICOM exchange for August delivery last traded 90 cents up.