TOCOM erases early gains as Shanghai dives

​Benchmark Tokyo rubber futures erased early gains on Friday as Shanghai futures dived to a two-week low amid worries over oversupply, brokers said.

Tokyo Commodity Exchange (TOCOM) futures, which set the tone for tyre rubber prices in Southeast Asia, earlier hit a near two-week high as the yen hovered near a three-month low against the dollar and Brent crude jumped to a 27-month high on Thursday.

The Tokyo Commodity Exchange rubber contract for April delivery finished 1.8 yen lower at 200.5 yen ($1.76) per kg. For the week, it gained 1.7 percent, the first such gain in three weeks.

Crude rubber inventories at Japanese ports stood at 5,302 tonnes as of Oct. 10, down 3.2 percent from the last inventory date, data from the Rubber Trade Association of Japan showed on Friday.

The most-active rubber contract on the Shanghai futures exchange for January delivery fell 190 yuan to finish at 13,330 yuan ($2,003) per tonne.

The front-month rubber contract on Singapore's SICOM exchange for November delivery last traded at 141.70 U.S. cents per kg, down 1.6 cent.