Tokyo rubber futures ended mixed on Tuesday as day-traders cashed in profit but fresh buying supported prices. The benchmark rubber contract on the Tokyo Commodity Exchange for September delivery settled unchanged at 287.5 yen ($2.41) per kg.
The April contract rose 0.3 yen while other contracts fell between 0.6 yen and 1.6 yen as players took profit from a recent rise. The benchmark fell briefly below the closely watched 285 yen on profit taking, but rebounded as players bought on dips, dealers said.
"285 is still the key support level," one said. "Rubber futures should be in range-trade of 280-290 yen for a couple of days because there's no fresh news to move the market." Rubber prices were supported by fundamentals, as supply was not expected to meet demand despite dry weather fading away.
The wintering dry season in Thailand, when latex output falls, is ending with farmers in some parts of the southern rubber growing areas having restarted tapping.
"Although farmers started tapping in some areas, latex output was not much and rains also disrupted tapping," a trader in Thailand's Hat Yai rubber centre said. Physical prices were expected to remain firm over the next few weeks because of rain in some parts of Thailand, they said.
Trading was more active than on Monday, with some users buying Thai RSS3 and Indonesia SIR20 through Singapore-based dealers, traders said. However, physical rubber prices were quoted slightly lower on Tuesday in line with TOCOM.