Rubber fell from an 11-week high as the Japanese currency strengthened after a U.S. Federal Reserve official cautioned against excessive optimism over the economy.
Rubber for delivery in January on the Tokyo Commodity Exchange declined as much as 1.1 percent to 263.1 yen a kilogram ($2,693 a metric ton) and was at 265 yen at 11:25 a.m. Futures settled at 265.9 yen yesterday, the highest close for a most-active contract since May 29. Rubber has lost to 13 percent this year.
The yen climbed against the dollar for a second day after St. Louis Fed President James Bullardsaid yesterday policy makers should be careful in changing course based solely on their economic forecasts. Economists predict a report today will show gains in U.S. consumer prices slowed last month.
“The stronger yen prompted investors to sell Tocom rubber after the recent rally,” said Gu Jiong, an analyst at commodity broker Yutaka Shoji Co.
Rubber for delivery in January gained 0.7 percent to 19,810 yuan ($3,239) a ton on the Shanghai Futures Exchange. Thai rubber free-on-board gained for a fifth day, adding 0.9 percent to 81.25 baht ($2.60) a kilogram yesterday, according to the Rubber Research Institute of Thailand.
Source: Bloomberg
