Japanese rubber futures were little changed on Tuesday, with seasonal year-end demand offset by expectations of softer near-term consumption after the EU Deforestation Regulation was delayed by another year.
The Osaka Exchange (OSE) rubber contract for May delivery 
TRB1!, TRB1! was down 1 yen, or 0.3%, at 335.1 yen($2.14) per kg, as of 0242 GMT.
The rubber contract on the Shanghai Futures Exchange (SHFE) for January delivery RSS31! rose 25 yuan, or 0.16%, to 15,280 yuan ($2,152.99) per metric ton.
The most active January butadiene rubber contract on the SHFE (SHBRv1) gained 5 yuan, or 0.05%, to 10,350 yuan per ton.
Rubber demand is set to weaken in the short term as upstream processors unwind stocked inventories, with the EU Deforestation Regulation’s implementation delayed by a another year, said broker Minmetals Futures.
With the EUDR implementation date pushed back, tyre makers can defer purchases of compliant grades, pressuring premiums for EUDR rubber.
The yen 
USDJPY was on the defensive, trading at 156.95 per dollar.
A stronger currency makes yen-denominated assets less affordable to overseas buyers.
Oil prices steadied as concerns that supply would exceed demand next year outweighed worries that Russian shipments would remain under sanctions.
Natural rubber often takes direction from oil prices as it competes for market share with synthetic rubber, which is made from crude oil.
Seasonal year-end demand and the onset of the rainy season in key producing regions of Thailand, Malaysia, and Indonesia supported rubber prices, Japan Exchange Group said in a report on Monday.
Top rubber producer Thailand’s meteorological agency warned of heavy rains and accumulations that may cause flash floods and overflows in the south from November 24-25.
Rubber production is concentrated in the south of Thailand.
The front-month rubber contract on Singapore Exchange’s SICOM platform for December delivery TF1! last traded at 172.8 U.S. cents per kg, up 0.1%.
AloJapan.com