Japanese rubber futures weakened slightly after opening higher on Wednesday. Prices are still supported by stronger crude oil prices, while the weak yen also supported prices.

As of 11:30 Beijing time, the rubber contract for September delivery on the Shanghai Futures Exchange fell 65 yuan to close at 14,980 yuan/ton. The rubber contract for December delivery on the Osaka Exchange fell 2.4 yen, down 0.72% to 331.2 yen per kilogram.

Oil prices rose slightly in early Asian trading on Wednesday. Earlier, industry data showed an unexpected sharp drop in US crude oil inventories, boosting fuel demand expectations in the largest oil consumer countries during the peak summer driving season.

The price of natural rubber usually follows the trend of oil prices because it competes with synthetic rubber made from crude oil for market share.

The yen continues to hover near a 38-year low as Donald Trump's chances of winning the US presidency increase, which could lead to higher long-term Treasury yields.

Japan's finance minister said on Tuesday that the Japanese authorities are wary of sharp fluctuations in the currency market, but have not issued a clear warning of intervention.

Currency depreciation has made assets denominated in yen more attractive to overseas buyers.

China's Ministry of Commerce said on Tuesday that China, the largest consumer of rubber, has agreed to begin negotiations with Switzerland to sign a further free trade agreement.

On the Singapore side, the last trading price of the recent month's rubber contract, which was delivered in August on the SICOM platform of the Singapore Exchange, was 169.1 cents per kilogram, down 0.1%.

(The above analysis is based on the latest views of Reuters)