Tokyo rubber futures inch lower

Tokyo rubber futures inched lower on Thursday due to falls in shares weighed down by unclear plan to solve the European debt crisis, but steadier oil prices and limited supply provided some support to rubber prices, dealers said. The newly-launched benchmark rubber contract on the Tokyo Commodity Exchange for June delivery slipped 1.3 yen to settle at 278.3 yen ($3.57) per kg.
The previous benchmark May contract dropped 1.6 yen to finish at 276.3 yen per kg, while the nearby December contract expired on Wednesday at 259.6 yen per kg. "TOCOM prices fell in line with share prices as the EU debt issue still pressured the market," one dealer said. Dealers said TOCOM prices could rise further on Friday on the back of firm oil prices, but upside was likely to be capped by profit-taking.