Rubber was poised for the first monthly gain in four as data showed U.S. consumer confidencerose to the highest level since 2008, weakening Japan’s currency against the dollar and boosting the appeal of futures in yen.
The contract for delivery in November on the Tokyo Commodity Exchange climbed to as high as 274.8 yen a kilogram ($2,692 a metric ton), the highest level since May 24. Futures were at 269.8 yen at 10:30 a.m. local time, advancing for a second day.
The yen weakened to 102.53 per dollar after slumping 1.4 percent yesterday. A Conference Board report showed U.S. consumer confidence climbed in May to 76.2, the strongest since February 2008 and exceeding the highest estimate in a Bloomberg survey of economists. Separate data showed that U.S. house prices rose in the 12 months through March by the most in seven years as the recovery in residential real estate gained momentum.
“The data added to optimism that the U.S. economy is improving and the yen’s weakening trend against the dollar will remain intact,” Takaki Shigemoto, an analyst at research company JSC Corp. in Tokyo, said by phone today.
Thai rubber free-on-board was unchanged at 90.65 baht ($3.01) a kilogram yesterday, according to the Rubber Research Institute of Thailand. Rubber for delivery in September on the Shanghai Futures Exchange added 0.8 percent to 19,300 yuan ($3,153) a ton.
Source: Bloomberg
