Tokyo rubber futures edged 1 percent higher on Tuesday, tracking firm oil prices, but gains were capped by profit-taking and investors grew cautious about high prices, dealers said. The benchmark rubber contract for June delivery rose 4.8 yen, or 1.1 percent, to settle at 439.9 yen ($5.30) per kg. "Players took profits when prices reached 440.0 yen, signalling 440 yen could be the key resistance," one dealer said.
In a Reuters poll, TOCOM rubber futures were forecast to be at 440.0 yen per kg by the end of January and were likely to rise further to 450 yen by the end of February due to strong demand at a time when supply is thin. Asian physical rubber prices were higher on Tuesday, with benchmark Thai RSS3 being offered at a record high of $5.35 per kg as rain has disrupted tapping. Asian physical supply was expected to remain thin in February and March as Thailand and Indonesia, the world's top two producers, are in the dry season, when rubber trees produce less latex, traders said.
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