Tokyo rubber futures snapped a three-day rising streak on Friday, with investors taking profits in the benchmark contract ahead of strong resistance at around 280 yen per kg. The key Tokyo Commodity Exchange rubber contract for December delivery reversed earlier gains to close 3.3 yen or 1.2 percent lower at 275.6 yen per kg. The contract earlier rose as high as 278 yen, its highest since June 29.
On the week, the benchmark contract rose 2.4 percent, paring the previous week's 4.4 percent decline. The spot July contract closed at 355 yen, down 1.0 yen from the previous close. China, the world's largest rubber consumer, bought some cargoes for August shipment, while tyre makers stayed on the sidelines waiting for prices to ease further as supplies improve in Thailand, dealers said on Thursday.
Thai RSS3 rubber is expected to hold above $3.0 per kg until the end of the year because bad weather looks set to limit supply, a senior agricultural official and traders said on Thursday. It was offered at $3.45 on Friday, off a record high of $4.10 per kg seen in April when severe drought hit Thailand.
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