RUBBER-Japan futures fall on weaker oil, rising supply prospects

By Ruth Chai

March 10 (Reuters) -

• Japanese rubber futures fell on Tuesday, paring the previous session's gains, as oil prices slipped after the U.S. president signalled that the Iran war could end soon, while rising supply expectations from key producers also added pressure.

• The Osaka Exchange (OSE) rubber contract for August delivery JRUc6, 0#2JRU: fell 5.1 yen, or 1.34%, at 374.9 yen ($2.38) per kg.

• The rubber contract on the Shanghai Futures Exchange (SHFE) for May delivery SNRv1 rose 55 yuan, or 0.32%, to 17,115 yuan ($2,487.54) per metric ton.

• The most active April butadiene rubber contract on the SHFE SHBRv1 fell 555 yuan, or 3.58%, to 14,935 yuan per metric ton.

• Oil prices fell on Tuesday after hitting their highest level in more than three years in the prior session as U.S. President Donald Trump predicted the war in the Middle East could end soon, easing concerns about prolonged disruptions to global oil supplies. O/R

• Natural rubber often follows oil prices as it competes with synthetic rubber, which is made from crude oil.

• The prices of Thailand's benchmark export-grade smoked rubber sheet (RSS3) RUB-RSS3C-BKK and block rubber RUB-STR20C-BKK have increased to 79.61 baht per kg and 70.44 baht per kg, respectively, due to limited tapping in Thailand.

• However, in the second-largest producer, Indonesia, rubber is approaching peak harvest season, particularly in states north of the equator, according to a report from Chinese broker CITIC Securities Futures.

• The Ivory Coast, which is set to overtake Vietnam as the world's third-largest producer of rubber, is also entering its tapping season, the report added.

• A recovering supply of rubber puts downward pressure on prices.

• The front-month rubber contract on Singapore Exchange's SICOM platform for April delivery STFc1 last traded at 198.2 U.S. cents per kg, down 0.5%, as of 0704 GMT.

($1 = 157.5400 yen)

($1 = 6.8803 yuan)