By Aya Takada Feb. 23 (Bloomberg) -- Rubber retreated from a one-month high as a drop in oil cut the cost of making rival synthetic products used in tires, and a strong Japanese currency weakened the appeal of yen-based contracts. Futures in Tokyo fell for the third time in four days and lost as much as 2.2 percent. The price reached the highest level since Jan. 21 yesterday, nearing this year’s peak of 306 yen per kilogram ($3,360 a metric ton) on Jan. 15. Crude oil dropped for the first time in six days before a report that is expected to show an increase in supplies in the U.S. The yen advanced as concern over Greece’s fiscal future and the pace of the Fed’s stimulus withdrawal increased demand for Japan’s currency as a refuge. “Rubber declined as it lost support from the currency and energy markets,” said Hisaaki Tasaka, an analyst at Tokyo-based commodity broker ACE Koeki Co., said today by phone. “Losses were limited as cash rubber prices gained on good demand and tightening supply.” Rubber for July delivery lost as much as 6.5 yen to 296.0 yen per kilogram before trading at 297.3 yen on the Tokyo Commodity Exchange at 11:39 a.m. local time. August-delivery rubber, listed on the bourse today, traded at 299.3 yen after opening at 300 yen. In the cash market, shippers in Thailand, the top producer and exporter, raised offers for RSS-3 grade rubber for April shipment to $3.27 a kilogram from $3.20 yesterday, Tasaka said. Chinese Buyers “Physical prices increased as Chinese buyers returned to the market after the Lunar New Year holiday,” Tasaka said. “Exporters also raised offers on expectations supply will decrease seasonally over the next few months.” Rubber trees shed leaves and latex output slows during wintering, or the low-production season, that normally begins in Thailand’s main growing areas in February. May-delivery rubber on the Shanghai Futures Exchange lost 0.8 percent to 24,790 yuan ($3,631) a ton at 10:44 a.m. local time. It rose to 25,380 yuan yesterday, the highest since Jan. 21, as trade resumed after a week-long Lunar New Year holiday. Crude oil for April delivery lost 0.4 percent to $79.86 a barrel in electronic trading on the New York Mercantile Exchange at 11:46 a.m. Tokyo time. The yen rose to 91.04 per dollar at 11:36 a.m. in Tokyo from 91.14 in New York yesterday, when the currency advanced 0.4 percent. To contact the reporters on this story: Aya Takada in Tokyo at atakada2@bloomberg.net; Supunnabul Suwannakij in Bangkok at ssuwannakij@bloomberg.net

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