BANGKOK: Tokyo rubber futures slipped almost 2 percent on Thursday, as traders locked in profits after prices climbed in the previous session, but firm oil and falling supply checked losses, dealers said.
The benchmark rubber contract on the Tokyo Commodity Exchange for July delivery fell 5.6 yen, or 1.7 percent, to settle at 320.3 yen ($4.17) per kg.
The most-active rubber contract on the Shanghai rubber exchange for May delivery fell 375 yuan to finish at 28,795 yuan ($4,600) per tonne.
"TOCOM moved in a tight range for a while so it was a good opportunity to take profit after prices rose significantly yesterday," one dealer said.
Brent crude held steady above $117 on Thursday on hopes of demand growth revival as Greece inches closer to getting its debt crisis under control while concerns over supply disruption from the Middle East provided support.
Rubber supply in Thailand and Malaysia, the biggest and the third-biggest producers respectively, was falling due to the wintering-dry season that cuts latex supply. The dry season normally last for a few months and ends by mid-April.
Dealers said TOCOM prices could rebound on Friday after prices finished above a major support level of 320 yen. However, another round of profit-taking ahead of the weekend by small investors could limit gains.
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