Oct. 16 (Bloomberg) -- Rubber retreated from the highest level in more than two weeks as the deadlined loomed for U.S. lawmakers to reach a deal on raising the debt limit and avoiding a default.
The contract for March delivery dropped 0.3 percent to end at 269.9 yen a kilogram ($2,742 a metric ton) on the Tokyo Commodity Exchange, after settling yesterday at 270.8 yen yesterday, the highest level since Sept. 26. Prices have fallen 11 percent this year.
Crude oil traded near a three-month low while Fitch Ratings put the U.S. on watch for a possible credit downgrade yesterday, citing lawmakers’ inability to forge a deal while reiterating that it expects the debt ceiling to be raised.
“Weak crude oil prices and concerns over the U.S. debt problems affect the rubber market,” Ryuta Imazeki, analyst at Okachi & Co., said by phone from Tokyo.
Rubber inventories in Qingdao, China’s main hub for the commodity, fell to 259,600 tons yesterday, from 271,300 tons at end of September, the Qingdao International Rubber Exchange says in an e-mailed report yesterday.
Rubber for January delivery on the Shanghai Futures Exchange fell 1.6 percent to 20,840 yuan ($3,417) a ton. Thai rubber free-on-board gained 0.3 percent to 81.05 baht ($2.59) a kilogram today, according to the Rubber Research Institute of Thailand.
--Editors: Jarrett Banks, Brett Miller