Rubber Posts First Weekly Loss in Four as Yen Reduces AppealAya Takada
Rubber declined, posting the first weekly loss in four, after Japan’s currency rebounded and crude oil dropped, weakening the appeal of yen-denominated futures.
Rubber for delivery in December on the Tokyo Commodity Exchange lost 2.7 percent to end at 238.4 yen a kilogram ($2,406 a metric ton) after settling yesterday at the highest level since July 5. Futures lost 2.7 percent this week, the first weekly decline since the five-day period through June 14.
The yen traded at 99.13 per dollar after climbing to 98.27 yesterday, the highest level since June 27. The Japanese currency rebounded after Federal Reserve Chairman Ben S. Bernanke said on July 10 the world’s biggest economy will continue to need stimulus for the foreseeable future.
“The remarks damped speculation that the Fed will start curtailing its bond-buying program as early as September, boosting the yen against the dollar and spurring sales of futures in Tokyo,” Takaki Shigemoto, an analyst at research company JSC Corp. in Tokyo, said by phone today.
Futures also declined as oil in New York fell for a second day, he said. Synthetic rubber prices usually track changes on crude oil.
“Concerns over economic slowdown in China spurred selling, pushing rubber prices lower,” said Megumi Saito, trader at commodity broker Yutaka Shoji Co. Demand in China and India is very weak, she said.
Rubber for January delivery on the Shanghai Futures Exchange lost 2.9 percent to 17,485 yuan ($2,848) a ton. Thai rubber free-on-board gained 0.6 percent to 80.35 baht ($2.58) a kilogram today, according to the Rubber Research Institute of Thailand.