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Gains of Wheat & Rubber

May 7, 2013 at 2:58 by Vladimir Vyun

Rubber surged as the weakness of the Japanese currencies led to gains of commodities price in the yen. The Bank of Japan is pursuing an aggressive monetary policy, pushing the currency down. At the same time, good economic data from the United States allowed the dollar to outperform the yen and improved the market sentiment. October futures for delivery of rubber jumped as much as ¥13.80 (5.44 percent) to ¥267.30 per kilogram on the Tokyo Commodity Exchange.

Wheat also rallied, boosted by signs of worsening conditions for US crops. The US Department of Agriculture that 32 percent of winter wheat was of good-to-excellent quality as of May 5, down from 63 percent in the same period a year ago. Previously, it looked like the rally of wheat may be short-lived, but not it looks possible that the commodity can maintain its gains. July futures for wheat advanced $0.0425 (0.6 percent) to $7.07 per bushel on CBoT.

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