Rubber declined for a second day as Japan’s currency rebounded from a two-month low against the dollar, reducing the appeal of yen-denominated futures.
The contract for delivery in April on the Tokyo Commodity Exchange lost as much as 1.4 percent to 257.5 yen a kilogram ($2,581 a metric ton) and traded at 258.4 yen at 10:17 a.m. local time. Futures have fallen 15 percent this year.
TOCOM Rubber Futures Prices on Tuesday, November 19, 2013 (yen/kilogram)
|
Month |
Last Settlement Price |
Open |
High |
Low |
Current |
Change |
Volume |
|
Nov 2013 |
248.6 |
247.6 |
247.6 |
247.6 |
247.6 |
-1.0 |
19 |
|
Dec 2013 |
252.1 |
251.0 |
251.0 |
249.8 |
250.1 |
-2.0 |
15 |
|
Jan 2014 |
253.7 |
251.9 |
251.9 |
250.9 |
250.9 |
-2.8 |
30 |
|
Feb 2014 |
256.5 |
256.2 |
256.2 |
253.7 |
253.9 |
-2.6 |
50 |
|
Mar 2014 |
259.1 |
259.2 |
259.2 |
256.0 |
256.8 |
-2.3 |
250 |
|
Apr 2014 |
261.2 |
261.0 |
261.3 |
257.5 |
258.7 |
-2.5 |
2,008 |
|
Total |
|
2,372 |
|||||
The dollar weakened against most major peers after Fed Bank of New York President William Dudley said that while he’s getting “more hopeful” the U.S. economy is gaining strength, policy will probably remain accommodative for a long time.
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“The market lost steam as the dollar’s rally against the yen stalled,” said Takaki Shigemoto, an analyst at research company JSC Corp. in Tokyo. “Rubber is vulnerable to selling without support from the currency market as supply from Southeast Asia is abundant.”
Futures also dropped after oil in New York slid to a five-month low, boosting speculation the price of synthetic rubber will decrease, he said. West Texas Intermediate oil for December delivery settled at $93.03 a barrel yesterday, the lowest level since May 31.
Rubber for May delivery on the Shanghai Futures Exchange fell 0.2 percent to 19,090 yuan($3,134) a ton. Stockpiles monitored by the bourse expanded 6.1 percent to 163,604 tons last week, the highest level since November 2004.
Thai rubber free-on-board lost 0.4 percent to 78.55 baht ($2.49) a kilogram yesterday, according to the Rubber Research Institute of Thailand.
Source: Bloomberg
