Tokyo rubber futures ended higher on Tuesday on the back of limited supply and firmness in oil prices, but gains were still capped by profit-taking after a recent rally to a 5-month high, dealers said. The benchmark rubber contract on the Tokyo Commodity Exchange ended 1.6 yen higher to settle at 328.4 yen ($4.13) per kg. On Monday, the TOCOM benchmark contract jumped 3 percent to a 5-month high of 328.1 yen per kg.
The most active rubber contract on the Shanghai futures exchange for May delivery rose 680 yuan to finish at 28,910 yuan ($4,600) per tonne. The front-month March TSR20 rubber contract on SICOM was last traded at 373.50 US cents a kg, down 0.20 cents. "Rubber futures should rise much higher today as firmness in oil prices should provide support, but profit-taking still weighed on prices," one dealer said. Dealers said TOCOM rubber could rise further on Wednesday after prices finished above a major support level of 320 yen, while limited supply on the fundamental front should lend an additional support.
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