Rubber advanced for a third day as wet weather disrupted tapping in Thailand, limiting supply from the world’s largest producer and exporter.
Copper dropped for a fifth day on concern that a probe into inventories at Qingdao Port will reduce demand for the metal as collateral for credit in China, the world’s biggest user of the commodity.
Rubber climbed for a second day, nearing an eight-month high reached Jan. 7, as speculation grew that China, the world’s biggest consumer, will step up purchases before holidays next month.
Rubber futures in Tokyo fell the most in more than three months and reached the lowest settlement since 2009 after the yen rallied and concern mounted that demand would ease in China.
Rubber tumbled on speculation that China, the world’s largest consumer, will raise interest rates to curb inflation, damping demand for commodities.
Rubber, which advanced 18 percent from a nine-month low reached in June, may extend the rally as moving averages formed a “golden cross,” according to technical analysis by Fujitomi Co.
Rubber increased as improvement in U.S. employment and consumer sentiment boosted speculation that demand will expand for the commodity used in tires, and as supply is limited from Thailand, the largest exporter.
"The market was mixed after recent reports showing economies in China and Europe are not good, while the U.S. is the only place where investors are seeing some signs of improvement."
- Kazuhiko Saito on Aug 27, 2014