Tokyo futures hit three-week low

Tokyo rubber futures fell 1.7 percent on Thursday as investors continued to take profits from recent record highs, but tight supply and strong oil prices should provide support, dealers said. The benchmark rubber contract on the Tokyo Commodity Exchange for August delivery fell 8.5 yen to settle at 478.8 yen ($5.80) per kg. It fell as low as 469.3 yen, the lowest since February 2.
"There was another round of profit-taking as players as well as investment funds thought that the market was overbought," one dealer said. But dealers said rubber prices could recover on Friday after prices found strong support at 475 yen per kg, and tight supply in producing countries should provide fundamental support. Oil prices hit a fresh 2-1/2-year peak on Thursday on concern the bloody unrest that has cut more than a quarter of Opec member Libya's crude output could spread to other major producers, including top exporter Saudi Arabia.