Rubber declines as yen's advance
Friday, 6 November 2009
TOKYO, Nov 5 (Bloomberg): Rubber declined for the second time in three days, reversing earlier gains, as a stronger Japanese currency versus the dollar reduced the appeal of yen-denominated contracts.
Prices in Tokyo also retreated as crude oil snapped three days of gains, reducing the appeal of natural rubber as an alternative to synthetic products made from petroleum. Futures earlier advanced as Thailand, the world's largest producer, forecast a slump in output because of heavy rain.
"A stronger yen was a major drag on the price of rubber futures," Shuji Sugata, research manager at Mitsubishi Corp. Futures Ltd., said Thursday by phone. "The market also took a cue for direction from the energy market."
Prices in Tokyo also retreated as crude oil snapped three days of gains, reducing the appeal of natural rubber as an alternative to synthetic products made from petroleum. Futures earlier advanced as Thailand, the world's largest producer, forecast a slump in output because of heavy rain.
"A stronger yen was a major drag on the price of rubber futures," Shuji Sugata, research manager at Mitsubishi Corp. Futures Ltd., said Thursday by phone. "The market also took a cue for direction from the energy market."