Tokyo rubber futures hit another record high on Friday but then ended the day lower as investors liquidated contracts to take profits ahead of the weekend, but thin physical supply still provided solid support, dealers said. The benchmark rubber contract on the Tokyo Commodity Exchange for June delivery fell 5.1 yen to settle at 435.1 yen ($5.22) per kg.
It rose earlier to a record high of 442.9 yen before profit-taking set in. Asian physical rubber prices rose further on Friday, with benchmark Thai RSS3 offered at a record high of $5.30 per kg, supported by strong demand at a time when supply remains limited, dealers said. Dealers said that, after the modest correction on Friday, TOCOM rubber prices could rise again next week because of thin supply and relatively firm oil prices.