Rubber Declines From 3-Month High as Stronger Yen Reduces AppealAya Takada and Supunnabul Suwannakij
Rubber fell from a three-month high as Japan’s currency appreciated, cutting the appeal of yen-based futures that entered a bull market yesterday.
Rubber for delivery in January on Tokyo Commodity Exchange dropped 0.5 percent to settle at 275.6 yen a kilogram ($2,816 a metric ton). The drop pared gains for the most-active contract to 15 percent this month, the most since December.
The yen strengthened to 97.76 per dollar, rebounding from a three-week low reached Aug. 23, after U.S. Secretary of State John Kerry said President Barack Obama will hold Syria accountable for using chemical weapons against its people. The yen also gained after a report yesterday showed U.S. durable goods orders fell in July for the first time since March.
“The yen was bought as a haven amid rising tensions in the Middle East, leading to sales of futures in Tokyo,” said Hideshi Matsunaga, an analyst at broker ACE Koeki Co.
Bookings for goods meant to last at least three years decreased 7.3 percent last month in the U.S., the most since August 2012, after a 3.9 percent gain in June, the Commerce Department said yesterday. The median forecast of economists surveyed by Bloomberg called for a 4 percent drop.
Rubber exports by Vietnam may surge 18 percent to 130,000 tons in August, according to General Statistics Office data. Shipments in the first eight months rose 4.4 percent to 637,000 tons from a year earlier, the data showed.
Rubber for delivery in January dropped 0.1 percent to close at 20,685 yuan ($3,379) a ton on the Shanghai Futures Exchange. Thai rubber free-on-board gained 0.6 percent to 84.45 baht ($2.63) a kilogram today, according to the Rubber Research Institute of Thailand.