July 2 (Bloomberg) — Natural rubber declined for a second day on speculation lower crude oil prices may erode demand and the yen’s strength will reduce the value of the Japanese currency-based commodity futures.

Crude traded little changed after falling 3.1 percent in the previous two days, making natural rubber less attractive than synthetic rubber. The yen gained as much as 0.3 percent, the first advance in four days against the dollar.

“Declining oil prices and the firmer yen put pressure on rubber futures in late trade,” Takaki Shigemoto, an analyst at Tokyo-based broker Okachi & Co. The lower sales in the U.S. by Japan’s carmakers also added to the bearish sentiment, he said.

Rubber for December delivery, the most-active contract, fell 0.5 percent to 157.9 yen a kilogram ($1,632 a ton) on the Tokyo Commodity Exchange after trading as high as 161.0 yen.

The contract had earlier gained as shippers in Thailand, the world’s largest exporter, raised offers to foreign buyers after rising Chinese manufacturing data boosted optimism demand from the biggest consumer will grow.

Thai shippers increased offers for RSS-3 grade rubber for August shipment to $1.65 a kilogram from $1.58 a week earlier, Shigemoto said.

Crude oil for August delivery was at $69.37 a barrel, up 6 cents, in New York at 2:55 p.m. Singapore time.

Toyota Motor Corp.’s U.S. sales in last month fell more than predicted after the company pared incentives and overall market demand failed to beat May’s level, delaying a U.S. rebound for Asian auto brands. Sales for Honda Motor Co. and Nissan Motor Co., Japan’s second- and third-largest carmakers, fell 30 percent and 23 percent, and South Korea’s Hyundai Motor Co. fell 24 percent. Total U.S. sales fell 28 percent, the 20th straight monthly decline.

Rubber for November delivery on the Shanghai Futures Exchange, the most-active contract, declined 2.1 percent to close at 15,160 yuan ($2,219) a ton.

Source: Bloomberg

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