June 11 (Bloomberg) -- Rubber declined for the first day in three on speculation supplies from Thailand, the world’s largest producer and exporter, will increase as the country enters a seasonal period of higher output. Shippers in Thailand lowered their offers for RSS-3 grade rubber for July shipment to $1.68 a kilogram today from $1.72 a week earlier, Takaki Shigemoto, an analyst at Tokyo-based commodity broker Okachi & Co., said today. “Prices declined as the country is in a high-production season,” Shigemoto said in a telephone interview. “Rubber shipments will probably increase in coming weeks.” Natural rubber for November delivery on the Tokyo Commodity Exchange lost as much as 2.2 yen, or 1.3 percent, to 169.2 yen a kilogram ($1,727 a metric ton) before settling at 170.9 yen. Still, losses in futures were limited after oil climbed to a seven-month high, raising the appeal of natural rubber as an alternative to synthetic products used in tires, Shigemoto said. Crude oil advanced 1.9 percent to $71.33 a barrel on the New York Mercantile Exchange yesterday, the highest settlement since Oct. 20. Prices climbed above $72 today after China’s net imports jumped to a 14-month high in May and a government report showed U.S. crude and gasoline stockpiles unexpectedly fell. Rubber for September delivery on the Shanghai Futures Exchange, the most-active contract, lost 0.6 percent to 15,630 yuan ($2,287) a ton.

Source