BANGKOK: Tokyo rubber futures ended 2.7 percent lower on Monday as concern about the European Union debt crisis continued to weigh on the market, dealers said.
But prices were still not far from recent three-month highs, with a Thai government plan to prop up the physical market providing support, they said.
The benchmark rubber contract on the Tokyo Commodity Exchange for June delivery fell 8.5 yen to settle at 306.0 yen ($3.97) per kg.
The benchmark hit a three-month high of 315.8 yen per kg on Friday.
Thailand, the world's biggest rubber producer, is drawing up plans to set aside 15 billion baht ($475 million) to buy rubber after USS3, the rubber sheet sold to factories by farmers, fell by half from last February.
The cabinet is due to make a decision on Tuesday.
"The market should rise further this week due to supply concerns after Thailand said it would intervene in the market. But steady oil prices and concerns about the EU debt crisis still weighed on the market," one dealer said.
Brent crude futures held steady around $110 on Monday as concern about European demand offset worries about supply disruptions from the Middle East due to tension between the West and Iran.
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