Rubber slumped to the lowest level in more than three weeks, heading for the fourth monthly decline, as a rebound in Japan’s currency against the dollar reduced the appeal of the yen-based futures.
The contract for delivery in November fell as much as 3.7 percent to 257.6 yen a kilogram ($2,540 a metric ton) on the Tokyo Commodity Exchange, the lowest level since May 7. The most-active contract traded at 260.7 yen at 10:14 a.m. and lost 0.8 percent this month.
The yen climbed 0.6 percent to 100.59 per dollar as a sell-off in global stocks spurred demand for haven assets. Asian stocks fell, led by Japanese shares, amid concern the U.S. Federal Reserve will reduce debt purchases on economic recovery.
“As the yen’s drop against the dollar has stalled, it is hard to find factors to buy rubber futures,” said Makoto Sugitani, the head of sales at Newedge Japan Inc. in Tokyo.
The U.S. economy grew at an annualized 2.5 percent pace in the first quarter, unchanged from a preliminary reading last month, economists said before Commerce Department data today. The Organization for Economic Cooperation and Development said yesterday global economic growth will accelerate in 2014 with both the U.S. and Japan continuing to outpace the euro area.
Thai rubber free-on-board was unchanged at 90.65 baht ($3.00) a kilogram on May 28, according to the Rubber Research Institute of Thailand. Rubber for delivery in September on the Shanghai Futures Exchange lost 0.4 percent to 18,710 yuan ($3,053) a ton.
Source: Bloomberg
