Rubber Drops as China’s Top Party Meeting Disappoints InvestorsAya Takada and Supunnabul Suwannakij
Rubber futures declined from a one-week high after China’s top-level Communist Party meeting disappointed investors looking for details on policy shifts, and as increasing supplies weighed on sentiment.
The contract for April delivery on the Tokyo Commodity Exchange dropped 0.3 percent to 257.8 yen a kilogram ($2,589 a metric ton). Futures yesterday settled at 258.6 on Nov. 11, the highest level since Nov. 1.
China elevated the role of markets in the nation’s economic strategy while stopping short of unveiling detailed policy shifts, after President Xi Jinping oversaw the gathering in Beijing. Natural-rubber production may rise 3.6 percent to 11 million tons this year from 2012, the Association of Natural Rubber Producing Countries said in a report yesterday.
“The lack of clarity from China’s leaders capped a rally in Tokyo futures,” said Takaki Shigemoto, an analyst at research company JSC Corp. An increase in production from key growers also weighed on prices, Shigemoto said.
Output in Thailand, the world’s largest grower, may gain 2.3 percent to 3.9 million tons, while production in Indonesia, the second biggest, may expand 4.6 percent to 3.2 million tons, the producer report said.
Rubber for May delivery on the Shanghai Futures Exchange closed little changed at 19,250 yuan ($3,160) a metric ton. Thai rubber free-on-board lost 0.3 percent to 78.80 baht ($2.49) a kilogram today, according to the Rubber Research Institute of Thailand.