Tokyo rubber futures dropped 1.5 percent on Wednesday on profit-taking, but firm oil prices were likely to stem any steep declines, dealers said. TOCOM prices were expected to move in the narrow range with the 260 yen level seen as a strong support, while the 270 yen level could be a major resistance, they said.
The benchmark rubber contract on the Tokyo Commodity Exchange for May delivery fell 4.2 yen, or 1.5 percent, to settle at 267.4 yen ($3.44) per kg. The most-active Shanghai rubber contract for May delivery dropped 370 yuan to finish at 24,790 yuan ($3,900) per tonne. "Players took profit when prices broke above 270 yen level and I think this level could be a major resistance for a while. But, prices should not fall sharply as they were still support by oil prices," one dealer said.
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