Rubber Snaps Six-Day Rally as Crude Oil’s Slump Reduces AppealAya Takada
Rubber declined, snapping a six-day winning streak, as a slump in oil weakened speculation prices will increase for rival synthetic products used in tires.
Rubber for delivery in December lost 0.5 percent to 255.8 yen a kilogram ($2,559 a metric ton) on the Tokyo Commodity Exchange. Futures have lost 15 percent this year.
Crude oil futures in New York extended losses after dropping the most in more than a month yesterday as U.S. output surged to a 22-year high last week. Japan’s currency rebounded to 99.77 per dollar, cutting the appeal of yen-based contracts.
“Futures lost steam as a rally in oil took a breather,” said Kazuhiko Saito, an analyst at broker Fujitomi Co. in Tokyo. “The focus is now on whether U.S. economic data will add to evidence for the nation’s recovery and weaken the yen further against the dollar.”
The number of people in the U.S. continuing to claim jobless benefits fell by 89,000 in the week to July 13, according to a Bloomberg survey of economists before data due today. Federal Reserve Chairman Ben S. Bernanke has said asset purchases that have stoked bond and equity gains may be trimmed this year should economic risks subside.
Rubber for January delivery fell 0.2 percent to close at 18,555 yuan ($3,023) a ton on the Shanghai Futures Exchange. Thai rubber free-on-board added 0.3 percent to 79.30 baht ($2.55) a kilogram today, according to Rubber Research Institute of Thailand.