Rubber climbs to highest level in almost three weeks

BANGKOK: Rubber climbed for a third day to the highest level in almost three weeks as Japan's currency dropped to a seven-month low, raising the appeal of yen-based contracts, and as rains in Thailand threatened supplies.

The contract for delivery in April gained 0.3% to 256.7 yen a kilogram ($3,128 a tonne) on the Tokyo Commodity Exchange, the most expensive at close since November 1. The rally pared losses for the most-active contract to 2.5% this year.

The yen slid to the lowest level since April after Japan's exports fell for a fifth straight month. Shipments dropped 6.5% in October from a year earlier, more than expected, leaving a trade deficit of 549 billion yen, the Ministry of Finance said on Wednesday in Tokyo. "A weakening yen is supportive" for prices, said Chaiwat Muenmee, an analyst at Bangkok-based commodity broker DS Futures.

Futures gained on speculation that China, the biggest buyer, will boost stockpiles, while rains in Thailand and Malaysia disrupted tapping, he said.