BANGKOK: Tokyo rubber futures edged higher on Thursday on the back of firm oil prices, limited supply and hope for the resolution of Greece's debt woes, but profit-taking still capped the upside, dealers said.
The benchmark rubber contract on the Tokyo Commodity Exchange for August delivery rose 2.9 yen, or 0.9 percent, to settle at 327.4 yen ($4.05) per kg.
The most-active Shanghai rubber futures contract for May delivery was down 80 yuan to finish at 28,005 yuan ($4,400) per tonne.
The front-month April rubber contract on Singapore's SICOM exchange was last traded at 377.0 US cents per kg, down 1.1 cent.
"TOCOM rubber rose in line with other commodities on better hopes about Greece debt issue and firm oil prices, but profit-taking by small investors prevent prices from rising much higher," one dealer said.
Major banks and pension funds, representing about 40 percent of Greece's outstanding debt, threw their weight behind Athens' bond swap offer to private creditors on Wednesday, raising the likelihood that the deal will go through and a 130 billion euro international bailout package would be secured.
Brent crude rose on Thursday, with prices staying above $124 a barrel on hopes that Greece would win enough creditor support to avoid a messy default and promising jobs data from top oil consumer, the United States.
Dealers said limited supply in major producing countries -- Thailand and Malaysia -- the biggest and the third biggest producer, also lent support to TOCOM prices.
Thailand is in the wintering-dry season, when rubber trees shed their leaves and produce less latex. The dry season normally runs through late April.
Dealers said TOCOM prices could rise further on Friday on the back of falling supply on the physical front, while technical sentiment improved after prices finished above a major support level of 325 yen.
However, possible profit-taking ahead of the weekend could still trap TOCOM prices in a narrow range of 320-330 yen, they said.
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