Tokyo rubber futures fell on Tuesday as investors booked profits after the benchmark contract rose more than 2 percent the previous day, with a firmer yen also adding pressure. The key Tokyo Commodity Exchange rubber contract for February delivery was at 210.4 yen per kg at 0323 GMT, down 1.1 yen or 0.5 percent from Monday's settlement at 211.5 yen, after moving between 208.5 yen and 212.3 yen.
The benchmark contract remains within sight of the year's high of 214.5 yen marked on August 31, which represents a rise of about 68 percent from this year's low marked in early March. Tokyo rubber futures rose more than 2 percent on Monday, helped by firm physical rubber prices due to consistent buying from tyre makers in a tight market.
"Some of the momentum to buy is gone as there's a feeling of caution in the market since it has hit 210 yen," a Tokyo-based broker said. Oil rose above $68 a barrel on Tuesday ahead of an Opec meeting on Wednesday at which the group is widely expected to keep its official output unchanged.
The US dollar dipped 0.3 percent from late in London on Monday to 92.78 yen. Japan's Nikkei stock average was flat on Tuesday, pressured by falls in exporters on a stronger yen, though bargain hunting on dips lent support. Raw material supply is tightening in Indonesia, and Japanese and European tyre makers are active in buying SIR20, which is still the most competitive grade from the top 3 producers - Thailand, Indonesia and Malaysia, traders said.