Tokyo rubber futures crept higher on Tuesday on the back of firmer oil prices, but the upside was capped by profit-taking after a recent price jump to one-week highs, dealers said. The benchmark rubber contract on the Tokyo Commodity Exchange for May delivery rose 2.6 yen to settle at 271.6 yen ($3.48) per kg.
Dealers said TOCOM prices could rise further on Wednesday after prices finished above a major resistance of 270 yen. The most active rubber contract on the Shanghai futures exchange for May delivery was up 75 yuan to finish at 25,160 yuan ($3,900) per tonne. "The market was supported by firmer oil prices but there was profit-taking after recent rises that limited TOCOM's gains," said a Bangkok-based trader. Global natural rubber output could rise 3.6 percent to 10.388 million tonnes in 2012, but growth is expected to be slower than this year as falling prices affect yield, according to the Association of Natural Rubber Producing Countries (ANRPC).