Rubber Declines From Five-Week High as Oil’s Drop Reduces Appeal
Rubber declined for the first time in four days as oil retreated from a one-month high in New York, reducing the appeal of the commodity as an alternative to synthetic products used to make tires.
December-delivery rubber lost as much as 1.8 percent to 252.1 yen a kilogram ($3,159 a metric ton), before trading at 252.6 yen on the Tokyo Commodity Exchange at 2:30 p.m. The most- active contract has lost 4.1 percent this year.
Oil fell in New York amid speculation that fuel demand may decline on signs Europe’s economy is weakening after Germany’s services industries unexpectedly shrank last month. Asian stocks dropped, snapping a six-day winning streak, before German data forecast to show factory orders declined.
“Weak economic data from Europe reduced investor appetite for commodities,” Takaki Shigemoto, an analyst at research company JSC Corp. in Tokyo, said today by phone. “Rubber was sold in tandem with oil and metals.”
The ECB will probably cut its benchmark interest rate by 25 basis points to a record low 0.75 percent today, while the BOE is forecast to raise its target for bond purchases, according to economists in Bloomberg News surveys.
Rubber for September delivery fell 0.3 percent to 23,845 yuan ($3,753) a ton on the Shanghai Futures Exchange. Thai rubber free-on-board dropped 1 percent to 102.55 baht ($3.25) a kilogram, according to the Rubber Research Institute of Thailand.
Thailand’s Rubber Estate Organization raised the price at which it buys ribbed-smoked sheets from farmers by 1.1 percent to 96.20 baht a kilogram today. That’s higher than the average auctioned price in three southern markets of 93.20 baht.
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