Tokyo rubber futures ended higher on Wednesday, recovering from previous losses due to concerns about limited supply in major producing countries, but easing oil and profit-taking limited the rise, dealers said. The benchmark rubber contract on the Tokyo Commodity Exchange for May delivery rose 3.6 yen to settle at 278.2 yen ($3.57) per kg.
It rose to an intra-day high of 280.6 yen, a major resistance, before profit-taking set in. The contract plunged to a near 2-year low of around 248 yen in November, mostly weighed down by European debt crisis concerns.
"There was limited supply during the dry season in producing countries that lent support, but profit-taking when prices broke above 280 yen still limited the rise," said a Bangkok-based dealer, adding that weaker oil prices amid a gloomy global economic outlook also weighed on prices. Prices were likely to be trapped in a narrow range with 270 yen seen as a strong support, while 280 yen was likely to be a major resistance, they said.
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