September 20, 2013
Benchmark Tokyo rubber futures ended up 2.7 percent on Thursday, after the US Federal Reserve unexpectedly postponed a scale-back of its monetary stimulus, boosting global equity and commodity prices. The Fed defied investor expectations on Wednesday by sticking to its $85 billion a month bond buying for now, saying it wanted to wait for more evidence of solid economic growth.
“FOMC’s decision to continue the status quo of monetary easing was quite a surprise, boosting the market,” said a Tokyo-based broker. The benchmark rubber contract on the Tokyo Commodity Exchange (TOCOM) for February delivery rose 7.5 yen to settle at 285.3 yen ($2.88) per kg.
The benchmark jumped by more than 3 percent to as high as 287 yen in early trade, the highest since September 9. China bought some rubber cargoes from Thailand and Indonesia for nearby delivery and could be looking for more as the market was abuzz with talk that the world’s largest consumer could stockpile again, dealers said on Thursday. Last year, China announced it would buy up to 200,000 tonnes of rubber from the domestic market to support prices, but dealers said only a fraction was purchased by the end of 2012.
Natural rubber exports from Ivory Coast, Africa’s leading grower of the commodity, rose nearly 13 percent to 197,837 tonnes by end-August since the start of the year compared with the same period last year, provisional port data showed on Wednesday. The front-month rubber contract on Singapore’s SICOM exchange for October delivery last traded at 246 US cents per kg, up 4.9 cents. Courtesy Reuters
Published in ZaraiMedia.com