Tokyo rubber futures slipped on Wednesday on profit-taking after prices failed to break above the 350 yen level, but the market was still supported by firm oil prices and limited supply in producing countries, dealers said. The benchmark rubber contract on the Tokyo Commodity Exchange for August delivery fell 2.1 yen to settle at 337.2 yen ($4.08) per kg.
The most active contract on the Shanghai futures exchange for May delivery fell 215 yuan to finish at 28,875 yuan ($4,600) per tonne. The front-month April rubber contract on Singapore's SICOM exchange was last traded at 379.5 US cents per kg, down 1.7 cents.
"The market was not very active and there was not enough buying force to push prices higher and that encouraged players to liquidate contract eventually," one dealer said. However, dealers said rubber was unlikely to fall sharply and should be supported by firm oil prices and steady demand at a time of the year when supply drops.
Traders in Thailand's Hat Yai rubber centre said supply was expected to fall as much as 50 percent from the current production of around 250,000 tonnes a month from now as farmers halted tapping because rubber trees would stop producing latex during the dry season. They resume tapping in mid-April.
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