Rubber slid to a nine-month low, heading for a fifth weekly drop, as a stronger Japanese currency cut the appeal of yen-based futures and the World Bank trimmed its global growth forecast.
The contract for delivery in November lost 3.7 percent to 231.3 yen a kilogram ($2,459 a metric ton) on the Tokyo Commodity Exchange, the lowest settlement since Sept. 7. Futures have lost 6 percent this week, extending this year’s drop to 24 percent.
The world economy will expand 2.2 percent in 2013, less than a January forecast of 2.4 percent and slower than last year’s 2.3 percent, the World Bank said in a report. The yen climbed to the strongest level in two months against the dollar after government data showed Japanese investors were net sellers of overseas bonds and stocks for a fourth straight week.
“The decline is driven by a strong yen and concerns over the global economic slowdown,” Gu Jiong, an analyst at commodity broker Yutaka Shoji Co., said by phone from Tokyo. “Investors are keeping an eye on a meeting between top producers but don’t expect any strong measures.”
Thailand, Indonesia and Malaysia will discuss measures to limit supply and reduce price volatility, Suwit Chaikiattiyos, deputy director-general at Department of Agriculture, who is a Thai representative in International Tripartite Rubber Council, said June 6.
Thai rubber free-on-board dropped 1.1 percent to 86.50 baht ($2.80) a kilogram today, according to the Rubber Research Institute of Thailand.
Rubber for delivery in September on the Shanghai Futures Exchange lost 3.2 percent to 17,750yuan ($2,890) a ton. The market was closed from Monday through Wednesday.
Source: Bloomberg
