Rubber fell for a fourth day to the lowest level in almost a week after data showed stockpiles inShanghai swelled to the highest level since January 2010.
The contract for March delivery lost as much as 1.6 percent to 263.1 yen a kilogram ($2,685 a metric ton) on the Tokyo Commodity Exchange, the lowest level since Oct. 15. Futures traded at 265.2 yen at 10:27 a.m., expanding losses for a most-active contract to 12 percent this year.
Natural-rubber stockpiles monitored by the Shanghai Futures Exchange increased to 140,445 tons, the bourse said Oct. 18. That was the highest level since January 2010. China is the world’s biggest consumer.
“Supply in China is increasing as domestic production expanded on good weather in Yunnan and Hainan provinces,” said Takaki Shigemoto, an analyst at research company JSC Corp. in Tokyo. “Rising stockpiles are putting a drag on futures.”
Rubber for January delivery on the Shanghai Futures Exchange lost 0.5 percent to 20,335 yuan($3,336) a ton. Thai rubber free-on-board fell 1.2 percent to 80.05 baht ($2.57) a kilogram on Oct. 18, according to the Rubber Research Institute of Thailand.
Source: Bloomberg
