Feb. 27 (Bloomberg) -- Rubber fell for a seventh day and reached the lowest level since December amid concern that European turmoil may slow the global recovery and boost Japan’s currency as a haven, cutting the appeal of yen-based contracts.
The contract for delivery in August on the Tokyo Commodity Exchange declined as much as 1.7 percent to 284.8 yen a kilogram ($3,103 a metric ton), the lowest level since Dec. 21. Futures traded at 287.3 yen at 12:19 p.m. in Tokyo, expanding losses this year to 5 percent.
The yen climbed 0.2 percent to 91.80 per dollar, strengthening from 94.77 reached Feb. 25, the weakest level in almost three years. Italy will sell bonds today after the nation’s inconclusive elections sparked the biggest advance in sovereign yields in 14 months, raising concerns the region’s debt-crisis may return.
“Optimism about global recovery is receding, sapping investor appetite for rubber,” Hideshi Matsunaga, an analyst at broker ACE Koeki Co. in Tokyo, said by phone today.
Inventories in China, the world’s largest consumer, monitored by the Shanghai Futures Exchange rose by 2,401 tons to 102,416 tons last week, the highest level since March 2010, according to data from the bourse.
The contract for September delivery on the Shanghai Futures Exchange added 1 percent to 24,400 yuan ($3,918) a ton. Thai rubber free-on-board declined 1.6 percent to 89.70 baht ($3.01) a kilogram yesterday, according to the Rubber Research Institute of Thailand.
--Editors: Jarrett Banks, Brett Miller