Rubber set to decline

China Daily | Updated: 2010-07-06 08:08

BANGKOK - Rubber futures in Tokyo, which closed unchanged on Monday, may decline later this week on speculation that supply from Thailand, the largest exporter, may gain and a stronger Japanese yen.

Futures in Tokyo swung between a gain and loss of 0.6 percent before settling at 266.6 yen per kilogram ($3,031 a metric ton). The December-delivery contract touched 260.3 yen on July 2, on concern that a slowing global economic recovery may weaken demand for the commodity used for tires and gloves.

The contract "may head lower on Tuesday as the yen continues to appreciate, while supplies in Thailand have gradually improved", said Chaiwat Muenmee, an analyst at Bangkok-based commodity broker DS Futures Co.

Bloomberg News

(China Daily 07/06/2010 page17)