ERJ staff report (TP)
Tokyo − Rubber dropped from a two-month high, snapping a three-day winning streak amid concern that rising prices may sap demand from China, the largest consumer, reported Aya Takada for Bloomberg.
The contract for delivery in May on the Tokyo Commodity Exchange lost as much as 1 percent to 272.5 yen (€1.95) a kg and traded at 274.1 yen (€1.96) at 11:35 am (Japan time, 3 December). Futures settled yesterday at the highest level since 26 September.
Asian stocks outside Japan fell for the first time in eight days and the region’s currencies weakened.
“The market came under pressure amid speculation Chinese buying had subsided,” said Hideshi Matsunaga, an analyst at broker Evolution Japan Co. in Tokyo.
Futures also declined on signs that anti-government protests in Thailand may be losing steam, reducing the risk of disruptions from the world’s largest exporter, he said.
Prime Minister Yingluck Shinawatra said a demand to replace the government with an unelected council was “unimaginable” under the constitution, and called for talks to end a dispute that is damaging Southeast Asia’s second-largest economy.
Thai rubber free-on-board added 1.9 percent to 81.20 baht (€1.86) a kg yesterday (2 December), according to the Rubber Research Institute of Thailand. Futures for May delivery on the Shanghai Futures Exchange lost 1.3 percent to 19,445 yuan (€2,351) a tonne.
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Full story from Bloomberg