BANGKOK: Tokyo rubber futures ended lower on Tuesday after speedy profit-taking following a surge on Monday, but rising oil prices and a plan by the top three rubber-producing countries to prop up prices limited the losses, dealers said.
The benchmark rubber contract on the Tokyo Commodity Exchange for April delivery fell 3.6 yen to settle at 273.0 yen ($3.55) per kg.
The most active Shanghai rubber futures contract for May delivery rose 140 yuan to finish at 25,485 yuan ($4,010) per tonne.
"Players took profits after recent rises. However, prices didn't fall sharply as they found support at 270 yen. The meeting in Bangkok to support prices also lent support," one dealer said.
The benchmark rubber contract jumped as much as 7 percent on Monday, the biggest daily gain in eight months, to settle at 276.6 yen per kg on the back of possible intervention from rubber-producing countries 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.
Benchmark Thai smoked rubber sheet (RSS3) has fallen by nearly half from a record high of $6.40 per kg in February. It was offered at $3.40 per kg on Tuesday.
Brent crude futures rose above $112 on Tuesday, recouping some of the previous session's fall of more than $2, but concern over Europe possibly slipping into recession and hurting demand for oil capped the gains.
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