Aug. 30 (Bloomberg) -- Rubber pared the biggest monthly advance since December as falling crude oil prices offset optimism after economic data from Japan to the U.S. showed signs of improvement.
Rubber for delivery in February on the Tokyo Commodity Exchange fell 1.1 percent to settle at 269.1 yen a kilogram ($2,747 a metric ton), the lowest level since Aug. 22. Futures gained 12 percent in August.
West Texas Intermediate crude fell for a second day after U.K. lawmakers rejected a motion for military action against Syria, reducing the prospect of an imminent strike and easing concern that unrest will disrupt Middle East oil supplies. The drop in oil eased speculation that prices of competing synthetic products will increase.
“Falling oil prices were negative for rubber,” said Gu Jiong, an analyst at commodity broker Yutaka Shoji Co. in Tokyo.
Japan’s consumer prices increased at the fastest pace since 2008 in July, adding to signs that Prime Minister Shinzo Abe is making progress in pulling the economy out of deflation. A report showed yesterday U.S. economic growth beat estimates, sending the dollar higher against the Japanese currency and boosting the appeal of yen-based contracts.
Rubber inventories in Qingdao, China’s main hub for the commodity, fell to 295,000 tons from 298,300 tons on Aug. 15, the Qingdao International Rubber Exchange said in a statement today. Stockpiles were at a record 371,000 tons on April 26.
Futures for January delivery dropped 0.7 percent to 20,000 yuan ($3,268) a ton on the Shanghai Futures Exchange. Thai rubber free-on-board remained unchanged at 84.65 baht ($2.63) a kilogram, according to the Rubber Research Institute of Thailand.
--Editors: Jarrett Banks, Sungwoo Park