Tokyo rubber futures jumped more than 3 percent to a one-week high on Monday on the back of rising oil prices and limited supply in producing countries, but gains were still capped by profit-taking, dealers said. The benchmark rubber contract on the Tokyo Commodity Exchange for May delivery rose 6.0 yen to settle at 269.0 yen ($3.46) per kg.
It rose as high as 3.3 percent to an intra-day high of 271.4 yen per kg, the highest since November 21. The most-active Shanghai rubber contract for May delivery rose 630 yuan to finish at 25,085 yuan ($3,900) per tonne.
"Sentiment improved as the rubber market was supported by limited supply and stronger oil prices, but prices settled below 270 yen eventually, due to profit-taking," said a Bangkok-based dealer. Brent crude rose more than $1 toward $108 a barrel on Monday. Physical rubber prices have rebounded and were expected to rise higher in coming weeks as supply in Thailand, the world's biggest rubber producer, was cut significantly by heavy monsoon rains that caused flash floods, killing 5 people and disrupting tapping.
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