BANGKOK: Tokyo rubber futures ended lower on Wednesday, weighed down by easing oil prices and falling Shanghai futures, while technical sentiment turned weak after prices broke below a key support level at 270 yen per kg, dealers said.
The benchmark rubber contract on the Tokyo Commodity Exchange for April delivery fell 3.7 yen to settle at 269.3 yen ($3.50) per kg.
The most-active Shanghai rubber contract for May delivery also fell 480 yuan to finish at 25,005 yuan ($3,939)per tonne.
"Sentiment was weaker as oil prices fell and I'm afraid TOCOM prices could fall further after prices dropped below the major support of 270 yen," one dealer said.
Brent crude slipped below $112 on Wednesday, reversing some of the previous session's gains on worries that new governments in Greece and Italy may fail to muster political clout to impose unpopular reforms and contain the region's debt crisis.
However, traders said TOCOM prices should not fall significantly further as prices should get a fillip from a meeting of the world's top three rubber producing countries to discuss ways to support prices.
The world's top three producers, Thailand, Indonesia and Malaysia, will meet in Bangkok on Friday and Saturday to discuss measures to stabilise the rubber market.
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