Tokyo rubber futures rebounded on Tuesday on the back of speculative buying after big losses the previous day but profit-taking capped gains, dealers said. The benchmark rubber contract on the Tokyo Commodity Exchange for April delivery rose 4.6 yen to settle at 358.3 yen ($4.31) per kg. It rose 2.8 percent to an intra-day high of 363.6 yen per kg before another round of profit-taking set in, dealers said.
"Strong speculative buying push prices up nearly 3 percent, but gains were finally limited by profit-taking again," one dealer said. The most active Shanghai rubber contract for May delivery rose 640 yuan to settle at 33,520 yuan ($5,040) per tonne. TOCOM prices were expected to remain firm this week, with 350 yen level was seen as a strong support level because rubber prices should be supported by tight supply. However, gains were likely to be capped by profit-taking by speculators.
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