Tokyo rubber futures fell from highs on Tuesday as bearish technical signs prompted fund selling, but record high crude oil prices and concerns over supplies provided some support. The benchmark Tokyo Commodity Exchange rubber contract for August delivery finished morning trade up 0.1 yen at 295.4 yen, off an intraday high of 298.0 yen.
"Compared with crude oil, which is at a record high, the gain in rubber is pretty modest," said Hisaaki Tasaka, market analyst at Ace Koeki Co Ltd. "The charts for rubber look poor and it is likely to fall from current levels," he said, adding that the key contract could slide as low as 270-280 yen, a range last seen in January. On Monday, the August contract fell as low as 290.5 yen a kg the lowest for a benchmark since February 8.But falls could be slowed by sharp gains in crude oil market and concerns over supplies.