Rubber Pares Monthly Gain Ahead of U.S. Growth Data, Fed Meeting
Rubber pared the first monthly gain in six ahead of U.S. economic growth data and a policy statement by the Federal Reserve today.
The contract for delivery in January fell as much as 2.1 percent to 238.7 yen a kilogram ($2,435 a metric ton) on the Tokyo Commodity Exchange and was at 242.6 yen at 11:52 a.m. Prices gained 2.7 percent this month, paring losses this year to 20 percent.
The Fed has indicated its $85 billion monthly bond purchases could be trimmed should the U.S. economy meet its forecasts, though Chairman Ben S. Bernanke has said there’s no fixed schedule for tapering stimulus. The government may say today that gross domestic product growth slowed last quarter, while employment data are also scheduled this week.
“Investors are waiting for the outcome of the FOMC meeting whether they will taper quantitative easing,” said Lee Chen Hoay, an analyst at Phillip Futures Pte., from Singapore.
U.S. gross domestic product probably grew at a 1 percent annualized rate from April through June, compared with 1.8 percent in the previous three months, according to the median estimate of economists surveyed by Bloomberg News before the Commerce Department data today.
Rubber for January delivery gained 1.3 percent to 17,745 yuan ($2,895) a ton on the Shanghai Futures Exchange. Thai rubber free-on-board fell 1 percent to 77.25 baht ($2.46) a kilogram yesterday, the lowest level since October 2009, according to the Rubber Research Institute of Thailand.
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