July 13 (Bloomberg) -- Natural rubber futures in Tokyo fell as the yen advanced against the dollar and investors speculated that shipments from Thai producers may increase. The yen gained as much as 0.4 percent against the dollar, reducing the value of the Japanese currency-based commodity, used to make tires. Output from Thailand, the world’s top producer, typically rises at this time of year with the end of the so-called wintering season when trees produce less latex. “The yen’s strength dragged rubber futures lower,” Takaki Shigemoto, an analyst at broker Okachi & Co, said by phone from Tokyo. Investors also sold the commodity as the volumes offered for sale from Thailand have increased, he said. Rubber for December declined 3 yen, or 1.9 percent, to 155.0 yen a kilogram ($1,673 a ton) on the Tokyo Commodity Exchange at 11:08 a.m. Tokyo time. The dollar rose as high as 92.95 yen before trading at 92.57 yen. Rubber climbed 0.2 percent last week after China’s passenger-vehicle sales surged in June, according to data from the China Association of Automobile Manufacturers. The price has gained about 14 percent this year, after slumping 56 percent in 2008 amid the global recession. China’s sales of cars, sport-utility vehicles and other passenger vehicles surged 48 percent to 872,900 last month, the association said on July 9. That helped to make the Asian nation the world’s largest auto market this year, with 27 percent more first-half sales than the U.S. Rubber for November delivery on the Shanghai Futures Exchange, the most-active contract, lost 0.7 percent to 15,340 yuan ($2,245) a ton at 10:10 a.m. local time.

Source