Tokyo rubber futures ended slightly higher on Thursday, supported by strong demand at a time when supply in major producing countries is tight, but gains were limited by profit-taking, dealers said.
The benchmark rubber contract on the Tokyo Commodity Exchange for August delivery rose 2.8 yen, or 0.6 percent, to settle at 436.4 yen ($5.39) per kg. It rose 2 percent early in the session to 442.8 yen before profit-taking set in. "Players started taking profits when prices tipped over 440 yen, the key resistance," said a Tokyo-based trader.
However, some dealers said futures could rise further on Friday, with 430 yen seen as a strong support level. The most active Shanghai rubber contract for May delivery slipped 25 yuan to settle at 36,625 yuan ($5,585) per tonne. Physical rubber prices jumped at least 33 percent this week as tyremakers returned to the market and resumed buying after prices fell to levels they found acceptable.
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